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TMI Blog2000 (12) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... ses and disallowed the remaining ones. Collector (Appeals) vide his impugned Order confirmed the Order of the Assistant Collector. The issues in the present appeals referred to the disallowed deductions on account of the following claims. Cash discount3. Cash discount @ 1.5% before 1-4-1984 and @ 2.1% after 1-4-1984 has been limited by the authorities below to the extent it was actually availed by the buyers of the appellant Company. The appellant had claimed the said deduction from their assessable value on the ground that the said discount was available to all the eligible wholesale buyers who paid the price in advance or on presentation of the bills. The same was made known to the buyers before removal of the goods and was being allowed as a matter of trade practice and for receiving prompt payment from their customers. 3.2.Shri Bagaria, ld. Advocate appearing for the appellants submitted that Cash Discount is an allowable deduction and liable to be allowed at the rate prevailing during the period concerned for determination of assessable value of all clearances irrespective of whether the buyer concerned had availed the said discount or not. He submitted that the said positi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pre-existing judgments of two different Division Benches of the Bombay High Court itself in the case of M/s. Jenson & Nicholson (I) Ltd. and Goodlass Nerolac Paints Ltd. which were in favour of the assessees. The said judgments were not taken note of in the subsequent decision in the case of M/s. Hindustan Mineral Products Company (P) Ltd. We find that the earlier judgments were directly on the issue involved and are detailed judgments. 3.4We find that the Hon'ble Supreme Court in the case of C.E.D. v. Devaki Anmol reported in 1995 (212) ITR 395 has observed as under :- "We are at a loss to understand how, once one Division Bench of a High Court has held a particular provision of law to be constitutional and not violative of article 14, it is open to another Division Bench to hold that the same provision of law is unconstitutional and violative of article 14. Judicial discipline demands that one Division Bench of a High Court should ordinarily follow the judgment of another Division Bench of that High Court. In extraordinary cases, where the latter Division Bench finds it difficult, for stated reasons, to follow the earlier Division Bench judgment, the proper course is to order t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Assistant Collector on the ground that the Hon'ble Supreme Court had recalled the judgment in the case of MRF Ltd. reported in 1987 (27) E.L.T. 553. It is observed that the recalled judgment has since been delivered by the Hon'ble Supreme Court and reported in 1995 (77) E.L.T. 433. In terms of the said judgment, interest on receivables is an allowable deductions. The appellants have also relied upon the following decisions and judgments : (i) 1998 (97) E.L.T. 395 (Supreme Court) - VST Industries Ltd. v. CCE, Hyderabad (ii) 2000 (117) E.L.T. 774 (T) = 1998 (26) RLT 236 CEGAT - Hindustan Lever Ltd. v. CCE (iii) 1998 (26) RLT 237-CEGAT - Rajasthan Explosives & Chemicals v. CCE (iv) 1998 (26) RLT 362-CEGAT - CCE v. Somany Pilkingstones Ltd. (v) 1998 (26) RLT 527-CEGAT - Gramophone Company of India v. CCE 4.2As the issue is no more res integra and is settled by the various decisions referred (supra), we accept the appellants' claim on this deduction also. Special discount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s from depot to depot are not being allowed, as not pressed by the appellants. Cost of packing in wooden boxes7. The Cellophane is packed as under :- (i) In the form of Reams-Reams are made by taking 500 sheets of cellophane. These are covered on both the sides by two paper boards. Thereafter the whole pack is packed with the help of wrapping kraft paper and gummed paper and tapes. (ii) In the form of Rolls-Rolls of Cellophane are wrapped with thick kraft paper and both the sides are tightened by using corrugated paper (hard) rings. The appellants contend that the goods packed in the above manner are in a full marketable stage. For the safety of the goods during transportation, the reams/rolls duly packed as aforesaid are further packed in wooden boxes. It is the contention of the appellant that the cost of these wooden boxes is not to be added in the assessable value of the final product in as much as the same is for the facility of transportation and for safety of goods during transportation. They submitted that even though such type of wooden boxes are being used in relation to its en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reight collected is in excess of actual expenses, the same is not to make a part of the manufacturing cost and the consequent assessable value. Following the ratio of the above decisions we allow the present appeal on this point also. Both the appeals are disposed of in above terms. Sd/- (Archana Wadhwa) Member (J) [Contra per : S.K. Bhatnagar, President]. -9. With due respect to the Hon'ble Member (J), my views and orders are as follows : 10.Insofar as the question of cash discount is concerned, I find that on one hand, there was a difference of opinion between the Benches of the Tribunal, on the other hand, there was also a difference of opinion between the Benches of the Bombay High Court. 11.This is evident from citations of both the sides. It is noteworthy that in the case of R.R. Paints - 1987 (28) E.L.T. 478, the Tribunal had relied upon the Supreme Court judgment in the case of Madras Rubber Factory Ltd. - 1987 (27) E.L.T. 553 (S.C.); and the Bombay High Court judgment in the case of Hindustan Mineral Product Company Ltd. - 1994 (72) E.L.T. 23 (Bom.) supports the view taken therein by the Tribunal. 12.The Bombay High Court had taken different view in the earlier ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Judicial) or the case is required to be referred to the Larger Bench on the issue of deduction of Cash Discount, as observed by the Hon'ble Vice-President." Sd/- (Archana Wadhwa) Member (J) [Order per : S.N. Busi, Member (T)]. -16. The under-mentioned difference of opinion between Shri S.K. Bhatnagar, Hon'ble Vice-President and Smt. Archana Wadhwa, Hon'ble Member (Judicial), has been referred to me as a Third Member for my opinion :- "Whether the appeals are required to be allowed after allowing the deductions as claimed by the appellants, as held by Member (Judicial) or the case is required to be referred to the Larger Bench on the issue of deduction of Cash Discount, as observed by the Hon'ble Vice-President." 17.Shri S.K. Bagaria, ld. Advocate, assisted by Shri C.M. Ghorawat, ld. Advocate, submits that the issue that cash discount is an allowable deduction for determination of assessable value of all clearances irrespective of whether all the buyers availed the said discount or not is already well settled by the judgments of the Hon'ble Supreme Court, different Hon'ble High Courts and Hon'ble Tribunal. The ld. Advocate points out that in the case of Bhartia Cutler Hammer L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ); (vi) CCEx. v. Goodlass Nerolac Paints Ltd. : 1999 (34) RLT 557-CEGAT (vii) Anil Starch Products Ltd. v. CCE : 1998 (25) RLT 120-CEGAT; (viii) CCEx. v. American Auto Services : 1998 (101) E.L.T. 187-CEGAT; (ix) CCEx. v. Kerala Oil & Soaps Ltd. : 1998 (97) E.L.T. 264-CEGAT; and (x) CCEx. v. Stallion Shox Ltd. : 1996 (85) E.L.T. 139-CEGAT. The ld. Advocate argues that in view of the aforesaid well-settled legal position, simply because of one or two isolated decisions as referred to in the order of the ld. Vice-President, there is no scope to refer the matter to the Larger Bench. The ld. Vice-President has referred to the Tribunal's decision reported in 1987 (28) E.L.T. 478 (R.R. Paints v. CCE). The said decision only relied upon the judgment reported in 1987 (27) E.L.T. 553 which itself was recalled by the Hon'ble Supreme Court as reported in 1989 (41) E.L.T. 703 and none of the earlier binding decisions on the said issue as given by the Hon'ble Bombay and Madras High Court were even considered in the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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