9911796707
TMI Blog1999 (5) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... is whether the assessee is entitled to deduct from the assessable value of the goods following elements: a) quantity discount; b) cost of special and secondary packing, c) interest on finished goods in stock at depot; d) handling expenses; e) remuneration of C F agents; f) discount for damages. In addition, in Appeal E/ 76/95 the question of eligibility of discount on interest receivables also arises. The Assistant Collector in the orders passed on two notices issued to the assessee (for different period) declined to permit deduction on in all these accounts. On appeal, the Collector (Appeals) allowed the assessee's appeals in all the above issues except the item relating to cost of special packing and secondary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or in the identically ground that the department is not concerned with what happened to the goods once it is sold or that can be reprocessed. The Collector (Appeals) has followed the decision in the Tungabhadra Industries Ltd. v. CCE, 1992 (60) ELT 512 : 1992 (41) ECR 329 (T). We have considered rival submissions. As far as the discount for damages is concerned the show-cause notice states as follows: The deduction claimed for 'Discount for damages' at (f) above does not appear admissible for deductions from wholesale price for computing the assessable value under Section 4 of Central Excise and Salt Act, 1944 because there is no certainty as to how exactly the goods are damaged or cost reimbursed. It is mere hypothesis and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for damage to goods during transit. The discount is actually granted by credit note or free supply of equal quantity of goods. The lower authorities rejected the abatement on this count on the ground that it is a post clearance discount. An identical dispute raised in respect of the same appellant for another period came up for consideration before us in appeals E/2399 2400/8-A. The appeals were disposed of by final order No. 196-197/97 dated 4.3.1997. We placed reliance on earlier decisions in Assam Valley Plywood Pvt. Ltd. v. CCE 1989 (43) ELT 360 and Tungabhadra Industries Ltd. v. CCE 1992 (60) ELT 512 : 1992 (41) ECR 329 (T) and held that discount allowed to wholesalers in lieu of damage caused to goods during transit depending on t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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