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TMI Blog2018 (7) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appellant as exclusive commercial agent , the 25% discount enjoyed by them is reasonable and the same cannot be termed as abnormal discount - appeal allowed - decided in favor of appellant. - C/00109/2011 - 41639/2018 - Dated:- 28-5-2018 - Shri V. Padmanabhan, Member (Technical) And Shri P. Dinesha, Member (Judicial) For the Appellant: Shri T. Sunderanathan, Adv. For the Respondent: Shri K. Veerabhadra Reddy, JC (AR) ORDER Per V. Padmanabhan: The present appeal challenges the Order-in-Appeal No. 29/2011, dated 25.01.2011. The appellant is a 100% subsidiary of M/s. Sultex Ltd., Switzerland of which M/s. Itema Asia and M/s. Promotech S.p.A., Italy are group companies. The appellants have been regularly impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y and also to maintain an inventory level of Euro one crore, He argued that the appellant is entitled to such trade discount since they are the sole agent for re-selling spares in India. The department has sought to disallow such discount by considering the price at which other importers are able to import similar goods from the same supplier. But he argued that such importers formed a different category since they are manufacturers who imported the goods for further manufacture. Clause 1.2 of the agreement specifically excludes such category from the 25% discount. Finally, he submitted that the appellant will be entitled to such discounts. 4. The learned Authorised Representative justified the impugned order, He argued that the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant is a distributor, who is handing imports at a different commercial level when compared to other Indian buyers. He has also observed that 25% discount from the price list is reasonable considering the fact that the appellant is also required to carry out various sales promotion activities as well as minimum order quantity and inventory levels. 7. In the facts and circumstances of the case, after consideration of the case in its entirety, we are of the opinion that in the light of the status of the appellant as exclusive commercial agent , the 25% discount enjoyed by them is reasonable and the same cannot be termed as abnormal discount. Hence, we are inclined to set aside the findings of the Commissioner (Appeals) in the impugned o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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