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TMI Blog2018 (11) TMI 812X X X X Extracts X X X X X X X X Extracts X X X X ..... ation but which were passed on to the customers. The only discounts which were not allowed are those which the appellant has not passed on to the customers but has claimed in their invoices - there is no reason to interfere with such an extremely fair and balanced order. As assessee claimed the discounts and has not passed on the same to their customers, we find that proviso to Sec.11A has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the rules during the relevant period, they had filed price declarations under Rule 173C of Central Excise Rules explaining that they offer trade discounts of 6% to sale depots outside Andhra Pradesh and 5% to those within the state. It appeared to the authorities that the assessee discharged the duty availing certain discounts which were not declared in the price declarations and that they were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a penalty of ₹ 10,000/- under Rule 173Q of Central Excise Rules, 1944. Aggrieved, the appellant filed an appeal before the first appellate authority who upheld the order of the lower authority and rejected the appeal. Hence this appeal. 3. The learned counsel for the appellant took us through the facts of the case and argued that they are eligible for deduction of trade discounts passed o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e lower authority and there is no scope for further relief. He further argues that since the appellant has claimed discounts and thereby short paid duty and has not passed on those discounts to the customers and therefore the penalties are rightly invoked. 5. We have considered the arguments on both sides. Trade discount is an allowable discount during the relevant period. We find from the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds, where a penalty under Sec.11AC is imposed, the penalty under Rule 173Q cannot be imposed. We therefore find that the penalty imposed under Rule 173Q is liable to be set aside and we do so. 6. The appeal is rejected except to the extent that the penalty imposed under Rule 173Q in the impugned order is set aside. (Operative part of this order was pronounced in the open court on conclusion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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