9911796707
TMI Blog1985 (8) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... ven after the excise duty came to be levied for the first time since 1961, the medicinal products are sold by the Company at the same old price. In other words, the excise duty paid by the Company is on the footing that the prices of the different sizes of tubes are Rs. 4.50, Rs. 3.37 and Rs. 3.00 respectively. 2. A Notification came to be issued on 8th October, 1966, being Notification No. 161/66, dated 8th October, 1966 in exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944. By this Notification, the patent or proprietary medicines falling under Item 14-E of the First Schedule to the Central Excises and Salt Act, 1944, hereinafter referred to as the Act, were exempted from so much of the duty of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n element of excise duty. 3. Now according to the appellant, it had not added any amount by way of excise duty to the price which it was charging the retail consumer and, therefore, the company was entitled to deduct a discount of 25 per cent from Rs. 4.50, Rs. 3.37 and Rs. 3.00 respectively. The contention of the department, however, was that in the price list these prices have been shown by the appellant as including the excise duty and therefore, for the purposes of ascertaining the 25 per cent discount, the excise duty will have to be deducted from the retail prices shown in the price list with the result that when 25 per cent of the discount was to be given, the prices, according to the Department, should be Rs. 3.19, Rs. 2.39 and Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been added to the price of the medicinal ointment. Therefore, according to the learned counsel, no deduction was permissible from the price of the respective tubes towards the excise duty for purposes of determining the 25 per cent discount contemplated by Clause (ii). 6. Mr. Somasundaram, on behalf of the department have vehemently contended that on the admission of the Company, the prices which it has displayed in the price list are inclusive of excise duty. Therefore, according to the learned counsel, if the prices of Rs. 4.50, Rs. 3.37 and Rs. 3.00 respectively contained an element of excise duty, then that element has to be excluded for the purposes of computation of 25 per cent discount. The , learned counsel, however, did not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dicines. The very fact that the price of the medicines continues to be the same as it was before the excise duty was levied, clearly indicates that no element of excise duty is added to the price of the medicinal ointment. 7. In our view, the stand taken by the department is wholly unsustainable. The appellant is, therefore, entitled to a deduction of 25 per cent of the price specified in the price list for the purposes of levy of excise duty in accordance with the Notification dated 8th October, 1966. 8. The other point, as to whether the sales tax is to be excluded for the purpose of discount, which was argued before the learned Single Judge, has not been argued before us, by the appellant. Hence, we- are not interfering with the find ..... X X X X Extracts X X X X X X X X Extracts X X X X
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