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TMI Blog2016 (10) TMI 650X X X X Extracts X X X X X X X X Extracts X X X X ..... spect of arranged sales from the appellants to independent buyers for which the dealers were paid percentage as incentive. This apparently is an ‘agency commission' not to be considered as trade discount on sale of excisable goods. It is clear that such ‘commission' cannot be considered for discount in terms of legal provisions of Section 4 of the Central Excise Act - commission (claimed as ‘trade discount') paid to such agents/dealers for arranged sales to third parties will not be eligible for deduction. Time limitation - Appellants did not respond for certain queries and certain declarations now produced by the appellants did not bear the stamp of the office - the present notices were issued on scrutiny of records maintained by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r dated 08.08.2008 was passed by the Commissioner of Central Excise, Jalandhar (HQ at Chandigarh). Another appeal is against the order passed by the Commissioner (Appeals), Jalandhar (HQ at Chandigarh) dated 20.07.2006 on the same issue. 2. The learned counsel for the appellants submitted that the lower authorities did not consider the agreements entered into by the appellants with their dealers and also the declared sales pattern of the appellants in correct factual prospective. All the agreements entered into by the appellants were taken as Agency Agreements' and proceeded to deny the discount in all cases of sale. The impugned order dealt with three type of discounts : (a) declared discounts to the dealers on goods sold to such d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or extended period. It is their case that in terms of the then Rule 173-C, they have been submitting the required declarations regularly giving the pattern of sale and the agreements entered into also have been furnished. The lower authorities have erred in holding that the appellants suppressed facts regarding nature of transaction with the dealers from the Department. This is not actually correct. 3 . The learned AR reiterated the findings of the lower authorities. He submitted that the lower authorities have examined the terms of agreement and categorically arrived at the conclusion that the deductions claimed by the appellants were rightly classifiable as commissions' paid to the agent and not a trade discount' given on sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r kg on the quantity of yarn sold to them. Further, it was also stipulated that the dealer will ensure lifting of sold goods within delivery schedule. We have also perused the sample invoices and credit notes regarding nature of such discounts extended to the dealers. One fact clearly emerges is that, these are transactions of sale by the appellants to the appointed dealers and discount on such sale, which was pre-declared in terms of the agreement, is clearly eligible for deduction. However, it is a fact that the said dealers also acted as agents in respect of arranged sales from the appellants to independent buyers for which the dealers were paid percentage as incentive. This apparently is an agency commission' not to be considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and certain declarations now produced by the appellants did not bear the stamp of the office. It is an admitted fact that no records for the relevant period could be traced in the jurisdictional Office. However, based on certain letters/ correspondence and also based on lack of Office stamp in some of the declarations, copies of which were submitted by the appellants, the original authority held that this is a case fit for invoking the extended period of demand. We have perused the impugned order and also various records submitted by the appellants. We find that the appellants have been filing the statutory declarations and returns during the impugned period and agreements were also filed. One important point to be noted is that, various sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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