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TMI Blog2024 (3) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... ding this cost to the assessable value, the original authority has failed to determine the value thereof by reference to Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 which is essential for validity in law. Moreover, the issue was considered by the Tribunal in their own case [ 2016 (9) TMI 782 - CESTAT MUMBAI] on sale effected to oil marketing companies (OMC) and it was held that appellants case is squarely covered under new Section 4(1)(a) of CEA which essentially permit different transaction values, unlike normal sales price existed prior to 1-7-2000, which has also been explained by C.B.E. C., vide its Circular No. 354/81/2000-TRU, dated 30-6-2000 in Para 5. The reliance placed by Learned Authorized Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as (CNG) that was contracted for supply to stations of Thane Municipal Transport (TMT) which was found to be excluded from assessable value was sought to be included as additional consideration. The appellant had entered into bulk contract for filling vehicles of the contracting agency with fuel at stations operated by them and also at depots of the transport agency. It was alleged that the trade discount was, in reality, payment for space occupied by dispensers and other equipment and provision of trained staff. 3. According to Learned Counsel for appellant, there was no consideration received from the buyer of compressed natural gas (CNG) while it was the amount foregone by them that is treated as recompense by the central excise authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant who has foregone consideration to the extent of trade discount which the lower authorities have convinced themselves to be costs of such facilitation. In thus loading this cost to the assessable value, the original authority has failed to determine the value thereof by reference to Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 which is essential for validity in law. 6. Moreover, the issue was considered by the Tribunal in their own case on sale effected to oil marketing companies (OMC) and it was held that 5.2 We find that entire period covered in all the appeals is post July, 2000, governed by amended Section 4. The new Section 4 essentially seeks to accept different transaction value, which ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cs on monthly basis with specific business days within which payment has to be made by OMCs and for any delay in payment, interest is also payable by OMCs. The appellants have paid VAT/sales tax on their sale of CNG to OMCs, as evidenced from the invoices. Further, sales invoices of OMCs for resale of CNG to ultimate buyers, VAT/sales tax is paid by them on their sales price. In nutshell, the appellants are paying VAT on its sales price to OMCs and OMCs are also paying VAT on their sales price to their customers. This clearly evidences that the AR s arguments that sale is not taking place between appellants and OMCs and also it is a paper transaction is incorrect and not supported by any evidence on record. It is noteworthy that this Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of PPs are buying CNG from MGL, through the PPs. The privity of contract is between MGL and those buyers and those sales are directly recorded in the Books of Account of MGL and not in the Books of PPs, as there is no sale and purchase of CNG by PPs and PPs act only as an agent of MGL on commission basis. The entire sales proceeds are remitted by PPs to MGL on daily basis. The contracts between MGL and PPs are that of principal and agent as the PPs are merely service providers and not buyers of CNG from MGL. Their obligation under the contracts is merely to provide assistance for supply/sale of CNG to the vehicles by MGL. For acting as an agent of MGL, PPs get specified service charges on per kg basis of the CNG sold by them on behalf of MG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hrough PPs, there is no sale between MGL and PPs, as the sale takes place between MGL and the ultimate customers/vehicle users and the PPs act as agents of MGL; that the PPs were/are issuing cash memos/invoices/bills of MGL, when they supply CNG to customers/vehicle owners; that the PPs are acting as agents of MGL, for which they get specified service charges and the PPs are paying service tax on such amount; that, in contrast, as far as OMCs are concerned, sale of CNG takes place between MGL and OMCs at OMCs outlets and OMCs issue their cash memos/bills/invoices to their customers/vehicle owners and MGL do not have any role to play in such transactions; that commission paid to PPs was Rs. 1.20/kg, Rs. 1.74/kg, Rs. 1.90/kg and Rs. 2.45/kg d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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