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TMI Blog2008 (2) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... than Pattari, Internal Auditor, for the Appellants Shri. D. P. Mukhopadhyay, SDR, for the Respondents [Order Per: Shri M.V.Ravindran, Member (Judicial)]- 1. This appeal is filed against the order-in-appeal No.SRK/371/M-III/2007 dated 01/10/2007. 2. The issue involved in this case is whether the appellant, who availed Cenvat credit of duty paid on the value of the inputs as per the invoices, after receiving the same from suppliers is eligible for the same after discount has been given by supplier. 3. The supplier of the inputs gave certain amount of discount depending upon the quantity purchased by the appellant during a particular period. This trade discount was given by issuing credit notes for the basic price. Show c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der. Ld. Authorised representative of the appellant submits that the issue involved in this case is squarely covered by the decision and the order of the Tribunal in the case of Brown Kraft Industries Vs. CCE, Thane, reported at 2007 (212) ELT 369 (Tri-Mumbai) and the department clarification in para 3.15 (ii) of Chapter 5 of supplementary instructions manual. It is his submission that the credit note was issued only for the basic price and not for amount of duty. 6. Ld. JDR on the other hand submits that any credit note, which is issued is always for the price. It is his submission that the price includes excise duty paid on clearances of finished goods by the supplier. It is his submission that provisions of Section 4 read tog ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner (Appeals) impugned order while setting as the order has not considered this face of the show cause notice. Though the credit note, which was issued by the supplier of the appellant is not produced before me, definitely there is nothing on record to show that there was a show cause notice issued to the supplier for demand of duty on the value, which has been sought to be reduced by credit note to the appellants. The entire case of the demand of duty and imposition of penalties would become irrelevant as the duty has been paid on the higher value when the goods were cleared and subsequently due to commercial arrangement between the appellants and the supplier the value/price of the goods initially cleared was reduced by issuance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Duty is paid on the basis of regular practice which is as per trade practice or on mutual agreement and the trade discounts/cash discounts and other discount are the normal practice, which cannot be quashed by the department as long as they receive the correct quantum of duty, on correct assessable value. Therefore, I am of the confident view that the department cannot direct the appellant to reverse the credit or to disallow the credit as the appellants had paid the duty and taken credit which is equivalent to duty shown in the invoice issued by the supplier, as such the confirmation of the demand for excess credit is not sustainable and penalty imposed thereof along with interest is not sustainable. Both the authorities had erred in d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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