1957 (10) TMI 31

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..... nts which include a trade discount (which in most cases is 6%) and certain order contractual discounts depending upon the annual business transacted by the firm etc. The transaction between the wholesale Depots of the Company and these independent Distributors being in the nature of Principal to Principal should rightly constitute the basis of assessment to Central Excise Duty within the meaning of Section 4 of the Central Excises and Salt Act, 1944. 2. M/s. Bata Shoe Company have contended that they should be allowed rebates of certain percentages off the wholesale prices towards expenses incurred by them on distribution of their products on freight, special packing, travelling expenses on the staff advertisements, insurance charges dur .....

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..... footwear in transit to various customers and Sales Depots as well as those incurred on stocks in Sales Depots, (Insurance charges on account of stores and stocks in the factory and on goods in transit from the factory to the wholesale Depots will, therefore, be inadmissible) ; (e) Interest on the value of stocks at Sales Depots ; (f) Expenses on account of Octrio and Sales Taxes. The Company has also claimed rebates in respect of expenses incurred by them on freight charges and special packing. (i) While in theory the actual freight charges incurred between the factory of the nearest wholesale market and the place of actual consumption should be excluded from the value assessable to duty, on the facts of this case, no rebate on .....

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..... he value assessable to duty. 5. Subject to proper verification by the respective Collectors of Central Excise, for the current year a discount of 16.43% in respect of canvas shoes and 15.93% in respect of leather shoes may be allowed of the wholesale prices for arriving at such value. These discounts have been arrived at in the manner indicated below :- (a) Distribution charges 5.68% (b) Travelling expenses 0.41% (c) Advertisement expenses (Note : In the absence of a clear break-up of the charges incurred by the Manufacturing and Sales O .....

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