9911796707
TMI Blog1993 (3) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... calculated on that basis. During the pendency of the petition, by an interim order dated 9-12-1983, the assessing authorities were directed to permit the assessee to submit the statements of deductions/amendments in respect of price-lists already filed for a proper determination of excise duty liability in respect of deductions either given on the invoices or issued by way of credit note at a later date, claiming under the headings : (1) trade discount; (2) bonus discount; (3) annual turn-over rebate; (4) product rebate; (5) additional product rebate; (6) free supply scheme; (7) incentive discount; (8) cash discount; (9) regular payment discount; (10) clearance, freight and octroi; and (11.) turn-over tax and surcharge, sales tax, together with any other claims for deductions which may be admissible. The order directs the assessing authorities to permit the petitioners to file such documentary evidence as may be necessary and as directed by the assessing authorities to finalise the price- lists/refund claims within the period specified therein and to file in this Court the orders of assessment along with copies of statements of deductions from the price-lists/refund claims. Accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nus discount in advance by way of circulars and are informed about the period in respect of which this discount is operative. It is given at the end of the accounting year. Though the actual quantum is not known at the time of the removal of goods, since it has reference to the total performance of the dealer, the range of benefits is known to the dealers at the time of removal of goods. The Assistant Collector, therefore, has held that the petitioners would be entitled to bonus discount. However, the Assistant Collector has declined to grant such a discount to the petitioners on the ground that the method of calculation is found to be unacceptable. It is not clear from the record what the method adopted by the petitioners was and why the method adopted by the petitioners was found unacceptable by the Assistant Collector. If he had any difficulty with the method adopted by the petitioners, he could have informed the petitioners and asked them to work out the bonus discount by another method. This does not appear, to have been done. The rejection of the petitioners' claim under this head only on the ground that the method adopted by the petitioners was not acceptable to the Assistan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... off-take by the dealers, certain quantity of goods are supplied free of charge. In fact, this is really a quantity discount. The Assistant Collector has held that the quantity of free supply would be known only at the end of the scheme period and as such, it would not be known at the time of clearance of goods from the factory. However, the scheme is well- known in advance. He has disallowed any discount under this head on the ground that this scheme of free supply is not uniformly adopted for all the dealers and for all the territories. The schemes are formulated for particular territories and/or particular period only. 8. The stand taken by the Assistant Collector is contrary to various decisions of our High Court and other High Courts, e.g. in the case of Union of India v. S.S.M. Bros. Pvt. Ltd. & Anr. - 1986 (24) E.L.T 269 (Mad.), the Madras High Court has held that for the application of Section 4 of the Central Excises and Salt Act, it is not necessary that the trade discount must be uniform and that such discount must be given at the time of the sale. It matters little whether trade discount is given at the time of a sale or subsequently so long as such discount has been g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the end of the month. In our view, the fact that this discount is given at the end of the month does not mean that this cannot be considered as a trade discount. There may be various reasons for granting a discount So long as it is a discount, it may be taken into account for determination of value under Section 4. 10. The next item of discount relates to cash discount. Under the scheme formulated by the petitioners, if payment in cash was made at the time of or before delivery of goods, 5% cash discount was offered and the same was reflected in the invoices. If the dealer paid the money within one month/the cash discount was reduced to 3.5%. If the dealer paid after 45 days but before 60 days, a discount of a lower percentage was given. The petitioners claimed a cash discount at the rate of 5% irrespective of whether such discount was given or hot in view the ratio of the decision of a Division Bench of this Court in the case of Jenson and Nicholson (India) Ltd. & Anr. v. Union of India & Ors., reported in 1984 (17) E.L.T. 4 (Bom.). In that case, a Division Bench of this Court considered the clarification given by the Supreme Court in the case of Bombay Tyres International Pvt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of removal, the cost of transportation from the place of removal to the place of delivery shall be excluded from such price. In view thereof, the petitioners were entitled to deduct from the price, freight for transport of goods from the sales godowns to the premises of the local customers. The reasoning given for excluding such freight charges does not appear to be proper. The Assistant Collector appears to have disallowed this claim on the ground that the actual transport charges in respect of goods manufactured in each of the factories of the petitioners were not available. The petitioners have, however, furnished information relating to the freight charges levied by them in respect of their own goods transported from the sales godowns to the premises of the local customers. In view thereof, this claim ought to have been allowed by the Assistant Collector. Our view is supported by a decision of the Division Bench of the Calcutta High Court in the case of Union Carbide (India) Ltd. v. Assistant Collector of C. Ex. - 1986 (23) E.L.T. 429 (Cal.). The Assistant Collector is, therefore, directed to grant the petitioners discount in respect of the freight charges. 12. It was urged ..... X X X X Extracts X X X X X X X X Extracts X X X X
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