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TMI Blog2006 (11) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... er, Central Excise (Appeals) Mumbai-IV who in turn has upheld the Order in Original dated 30-8-04. 2. The facts of the case are that the Appellants are the manufacturers of corrugated boxes/tubes falling under Chapter Heading No. 48.19 of CETA, 1985. They were not reversing the excess Modvat/Cenvat credit availed on the raw materials because of trade discounts passed on by their supplier at later stage. It is alleged by the department that after giving discount the transaction value changed, and resulted in payment of reduced duty. This amounted to excess credit passed on to the appellant to the extent of differential duty calculated on the discount amount. The department further alleged that the appellants raised debit notes to the sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appearing for the appellants submits that the appellants have taken correct Cenvat credit of the duty amount as mentioned in the Central Excise invoice of the assessee i.e. the supplier of the inputs. There was no question of any excess credit or unauthorized credit because there was no other evidence produced by the department to indicate that the assessee or supplier had not paid or short paid duty at the end of the month, as per the provisions of the Rules. The assessable value declared by the assessee in their Central Excise Invoices had not been the subject of dispute at all. The trade discount depends upon various commercial aspects. It may be given before the assessment of the goods to the payment of duty, or may be given after pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imed by the assessee supplier or reduction of sale price of the goods, there is some meaning in the action of the department to demand the appellants to reduce or reverse the credit equal to short payment of duty or refund claim. There is no such exercise by the authorities concerned at the suppliers end. Duty is paid on the basis of regular practice which is as per trade practice or on mutual agreement and the trade discounts/cash discounts and other discount are the normal practice, which cannot be quashed by the department as long as they receive the correct quantum of duty, on correct assessable value. Therefore, I am of the confident view that the department cannot direct the appellant to reverse the credit or to disallow the credit as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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