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TMI Blog2021 (9) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court in the Addison case has held in unequivocal terms that Credit Notes are valid instrument for the purposes of passing post clearance discounts and that an assessee is entitled for filing the claim for refund on the basis of Credit Notes raised by him towards discount. The CA certificate produced by the Appellant in the instant case goes to show that the Appellant has not passed on the incidence of duty on discount to its dealers. It is also found from the sample certificates issued by the dealers that such dealers were not registered under the Central Excise Law for the purposes of availing or passing of Cenvat credit. Therefore, the question of any double benefit in the form of refund of excise duty on the component of dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learance, these are processed only through Credit Notes issued at the end of each discount period (which is a block of four months) subject to meeting the eligibility conditions intimated through discounts circulars and personalized letters well prior to effecting clearances. 2. Owing to inability of the Appellant to quantify such turn-over/cash discounts at the time of clearance, the Appellant applied for a provisional assessment for the block period of 4 (four) months i.e. August 2013 to November 2013 (hereinafter referred to as the relevant period ), which was initially rejected by the jurisdictional Deputy Commissioner vide his Order dated 29 October 2013. The said prayer for provisional assessment eventually came to be allowed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g decisions in support of its contention: (i) Fenner India Ltd. Vs. CESTAT, Chennai reported in 2014 (305) ELT 524; (ii) CCE, Madras Vs.Addison Co. Ltd. reported in 2016 (339) ELT 177 5. The Ld. Authorised Representative assailed the impugned Order-in-Appeal dated 14 August 2018. He submits that a Credit Note is a valid document for processing post sale discount and when the excise duty on excise component was not at all recovered from the dealers, the question of dealers passing on the incidence of excise duty on discount to their buyers does not arise. He relies upon the certificate dated 10 October 2014 from a practicing Chartered Accountant,who after verification of the books of accounts of the Appellant including the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rds. 8. It is not in dispute that the Appellant had processed the discounts (turn-over discount/cash discount etc.) in favour of its dealers through Credit Notes. It is also not the case of the revenue that such post clearance discounts are not an admissible deduction from the transaction value. Only issue that arise for my consideration is whether the grant of refund of excess excise duty paid on the transaction value without seeking an adjustment for discounts to the Appellant shall be hit by the principle of unjust enrichment. The law in this regard is well settled by the Hon ble Supreme Court in Addison case (supra) that the onus is upon the person claiming refund of excise duty on post clearance discount to establish that the incide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... post clearance will not be taken into account for the purpose of a refund by the Department. We do not agree with the said submission as it was held by this Court in Union of India v. Bombay Tyre International (supra) that trade discounts shall not be disallowed only because they are not payable at the time of each invoice or deducted from the invoice price. It is the submission of the Assessee that the turnover discount is known to the dealer even at the time of clearance which has also been upheld by this Court. It is clear from the above that the Assessee is entitled for filing a claim for refund on the basis of credit notes raised by him towards turnover discount. The CA certificate produced by the Appellant in the instant case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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