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TMI Blog2017 (3) TMI 780X X X X Extracts X X X X X X X X Extracts X X X X ..... t the impugned Order-in-Appeal No. 151-152/2007 dated 26.7.2007. The disputed period is December 2004 to May 2005. 2. The brief facts of the case are that the appellants are engaged in the manufacture of writing and printing papers falling under Chapter 48 of the Schedule to the Central Excise Tariff Act, 1985. 3. In the instant case, the main issue is whether the cash discount realized back by the appellants through debit notes is chargeable to Central Excise duty. It may be mentioned that the transaction value defined in clause (d) of sub-section (3) of Section 4 of the Central Excise Act, 1944 is as under: d) transaction value means the price actually paid or payable for the goods, when sold, and includes in addition to the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manded in respect of cash discount which was not actually passed on to the customers. The learned Advocate has relied upon the decision in Pace Marketing Specialties Ltd., supra , wherein it has been held by the Tribunal that cash discount is a discount allowed for prompt payment for the goods and when this discount is reduced from the invoice price, transaction value at the time of delivery of goods is obtained, otherwise, the invoice price is a future price and as the assessable value is to be determined with regard to time of removal financing and other cost cannot form part of the assessable value. With due regard, we find ourselves unable to agree with this view. The measure for valuation under New Section 4 of the Central Excise Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lause (d) of sub-section(3) of Section 4 of the Act as under :- transaction value means the price actually paid or payable for the goods, when sold, and includes in addition to amount charged as priced, any amount that they buyer is liable to pay to, or on behalf of, the assessee, by reason of, or in connection with the sale, whether payable at the time of sale or at any other time, including , but not limited to, any amount charged for, or to make provision for, advertising or publicity marketing and selling organization expenses, storage, outward handling, servicing ,warranty, commission or any other matter, but does not include the amount of duty of excise, sales tax and other taxes, if any actually paid or actually payable on suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 944 as amended in 2000, has made no change in the situation qua cash discount as it obtained under the old Section 4. According to him, what has to be seen in order to arrive at the correct value of excisable goods under Section 4 is such value at the time of removal, and this being so under both the old Section and the new Section, cash discount has to be allowed as has been held in Union of India v. Bombay Tyre International Limited, 1984 (17) E.L.T. 329 (S.C.), and Government of India v. Madras Rubber Factory Ltd., 1995 (77) E.L.T. 433 (S.C.). 6. In the light of the Supreme Court s decision followed by the Tribunal (supra), the issue is settled. Hence, there will be no need to add back the discount to the assessable value, even ..... X X X X Extracts X X X X X X X X Extracts X X X X
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