9911796707
TMI Blog2015 (10) TMI 2202X X X X Extracts X X X X X X X X Extracts X X X X ..... trade discount, they were also reducing the bill in the name of service charges, which was again based upon per piece of fan. Revenue s objection is that service charges will form part of the assessable value and no deduction can be given for the service charges. Appellants contention, on the other hand, is that service charges is also a type of discount and it is uniformly given to all the wholesalers/dealers and the quantum of service charges to be deducted is known to the department as well as to the dealers and, therefore, the amount is required to be deducted. It is also the submission that due to the objection from the department, w.e.f. 1st September 1999 they changed the nomenclature from service charges to additional trade discount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Bombay Tyres International. It was further submitted by the learned AR that a three-Member Bench of this Tribunal in the case of Premier Automobiles Ltd. vs. CCE reported in 1985 (20) ELT 156, has clearly held that after-sales services charges is not a trade discount, hence includable in the assessable value. 4. We have considered the rival submissions. We note that the three-Member Bench of this Tribunal in the case of Premier Automobiles Ltd. has observed as under:- "4.As stated earlier, the learned counsel for the appellants has drawn our attention to the clarification given by the Supreme Court while construing the expression trade discount . It is true that the Court has held that discount allowed in the trade should be allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the invoices what service charge " means. Therefore, the customer does not know that' Service Charge " is a discount. It is necessary that customer should know from the invoice that discount is clearly shown on the invoice and the same is passed on to the customer then only deduction on account of discount is permissible under the law . A detailed nature of transaction with their customers and the place this "service charge" occupies in that transaction should have been provided. In the balance sheet they have shown service charges*' on the Expenditure side with Product Promotion" meaning thereby that it is related to promotion of the product and is not a discount. The appellants have merely stated that service charges' are noth ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
