9911796707
TMI Blog2025 (3) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... been accepted by the department. It is observed that the assessments finalized for the relevant period were not challenged by the department by way of filing an appeal before Commissioner (Appeals) as provided under Section 35A of the Act. Therefore, the final assessment orders had attained finality. In such circumstances, it is not open to the revenue to issue SCN to the Appellant for the same period for which assessments have been finalized. Interest and penalty - HELD THAT:- The demands confirmed in the impugned order without challenging the final assessment orders is not sustainable and are accordingly, set aside. Since the demand of Central excise duty is not sustained, the question of demanding interest and imposing penalty does not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cting the quantum of discount there from is the value at which goods are actually sold from the depots. Accordingly, this is the value adopted by the Appellant for payment of excise duty on goods cleared from its factory to its depots, as per the mandate of Rule 7 of the Valuation Rules. 2.1. The Appellant allowed the following types of discounts like Cash Discount, Quantity Discount and Turnover Discount. * Cash discount- the rate of this discount in respect of Rayon Yarn was 2% during the period from 24.05.199 to 31.10.2001 and 1.5% with effect from 01.11.2001. In respect of Rayon Yarn, most of the buyers at the depots (more than 90%) availed such cash discount during the relevant period whereas only about 10% of the buyers of Cellopha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount applicable to PT Reams, there were generally three different slabs and the rates varied depending on the quantity lifted by the concerned buyer within the specified period. In view thereof, while clearing goods from the depot, deduction was claimed on the basis of such circulars and at the rates mentioned in the last/lowest slab. In any case, if any particular buyer did not lift the required quantity of goods and was only eligible for the lowest slab rate, the Appellant quantified the differential duty and paid to the department. 2.2. The Appellant adopted this practice during the relevant period. However, due to the inherent difficulties in arriving at the correct normal transaction value under Rule 7 for goods cleared to the depots, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the depot for each removal of goods from the factory; * No one-to-one co-relation established between who fulfilled the condition for discount and to whom the discount was actually passed on; * Discounts claimed on the factory invoices were not actually passed on to the buyers by the Appellant. 2.5. Being aggrieved by the common-Order-in- Original dated 10.09.2014, the Appellant has filed the instant appeal before this Tribunal. 3. The appellant submits that the issue is no longer res-integra as decided by this hon'ble tribunal in 2024 (4) TMI 167-CESTAT KOLKATA (m/s steel authority of india limited v. commissioner of central excise and service tax) wherein it has been held that discounts which were known to the buyers at the time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt has been passed on to the dealers which were not challenged by the Revenue in the earlier occasion. So, the Adjudicating Authority had rightly sanctioned the refund on the basis of the findings of the Commissioner (Appeals) in earlier Orderin- Appeal. Hence, the impugned order cannot be sustained." 3.2. Therefore, the appellant submits that as the issue is no longer res-integra, on the same lines, the Appellant should be allowed the deduction of the discounts from the assessable value for payment of excise duty. 3.3. The appellant further submits that in the absence of any challenge to the final assessment orders passed for the self-same period by the proper officer by way of an appeal, the issuance of a show cause notice is pre-matu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f filing an appeal before Commissioner (Appeals) as provided under Section 35A of the Act. Therefore, we observe that the final assessment orders had attained finality. In such circumstances, it is not open to the revenue to issue SCN to the Appellant for the same period for which assessments have been finalized. 6.1. Thus, we hold that the demands confirmed in the impugned order without challenging the final assessment orders is not sustainable and accordingly, we aside the same. Since the demand of Central excise duty is not sustained, the question of demanding interest and imposing penalty does not arise. 7. In view of the above discussions, we set aside the impugned order and allow the appeal filed by the appellant, with consequential ..... X X X X Extracts X X X X X X X X Extracts X X X X
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