9911796707
TMI Blog2016 (8) TMI 578X X X X Extracts X X X X X X X X Extracts X X X X ..... ent to the job-worker. We also note that there is no reference to the manner in which the duty liability was compensated by the loan-licensee. The job-work charges are only one element of the total cost/price of cleared goods with the major portion being expended by the loan-licensee. Apparently, the price at which the wholesaler/retailer is to be supplied is determined by the loan-licensee who also assumes the responsibility for complying with the procedure laid down in the Central Excise Rules. It is difficult to conclude that the job-worker is in receipt of any amount, other than job-work charges paid by the loan licensee, from the wholesaler/retailer. Consequently, there is no basis for alleging that such trade discount has been retaine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot passed on to the recipient of the medicaments. The duty liability thus allegedly evaded was computed as ₹ 70,65,907/- on claimed discount of ₹ 4,78,61,920/- for the period from September 1999 to July 2003. 3. The agreement between the job-worker and the loan licensees required supply of raw materials and technical know-how and the job worker was entitled to processing charges. It was the responsibility of the job-worker to discharge the duty liability upon clearance of the goods. 4. Revenue contended in appeal that the respondent had failed to furnish documentary evidence of discount having been passed on to the wholesaler/retailer, that the responsibility for discharging the burden rested upon the manufacturer that the adj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the loan-licensee. Apparently, the price at which the wholesaler/retailer is to be supplied is determined by the loan-licensee who also assumes the responsibility for complying with the procedure laid down in the Central Excise Rules. It is difficult to conclude that the job-worker is in receipt of any amount, other than job-work charges paid by the loan licensee, from the wholesaler/retailer. Consequently, there is no basis for alleging that such trade discount has been retained by the respondent. 9. The case of the Revenue, appears to hinge on the reluctance /unwillingness on the part of the respondent to produce invoice which would, apparently, show the actual quantum of discounts passed on to the wholesaler/retailers. These invoices ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
