9911796707
TMI Blog2003 (7) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... tes. They were in error in holding that price was known at the time of removal and issue of credit notes only indicated post-sale revision of prices. According to Section 4 of the Central Excise Act, in a case of sale of goods, the transaction value is to constitute the assessable value. The appellant s transactions with their dealers are clearly cases of sale and that transaction value is the value determined after issue of credit notes. The account of each dealer is settled every month at the rate discounted by the credit note amount. There was no further amount paid or payable over and above that net amount. Therefore, the discounted amount, net of the credit note, was required to be treated as assessable value. Since original payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt period, their practice was to clear the goods from the factory and despatch them to dealers by showing a uniform price fixed in a meeting of Glass Manufacturers Association from time to time. However, because of stiff competition in the market and slump in the sales of the goods, the appellants were giving discounts. It is contended that such discounts were determined on monthly basis, and credit notes issued to the dealers for the amount due by way of discount in a month, along with the last sale for the month. It is the appellant's contention that sale price for the goods was the net price arrived at by reducing the credit notes amounts from the invoice amounts. They have also pointed out that the accounts between the appellant and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that lower authorities were in error in holding that prices indicated in the invoices prepared at the time of removal of the goods constituted the transaction values and subsequent issue of credit notes only showed a revision of those values. According to learned Counsel, the very fact that, from month to month, the appellants were issuing credit notes showed that prices had not been fixed at the time of removal of the goods and that the prices indicated in the invoices were provisional and was to be settled during the course of month and that the provisional nature of the prices indicated in the invoices was known and accepted by both sides. According to him, the very fact that accounts between the parties were settled at the net discounte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he prices are amounts shown in the invoices. As against this, the learned Counsel for the appellants has submitted that the expressions 'when sold' only clarifies that transaction value is the price in a case of sale of goods, and not transfer of goods other than through sale. According to him, these words made clear that assessment under transaction value was attracted only in cases of sale of goods and that in cases other than sale of goods, assessable value has to be determined in terms of Section 4(1)(b). 5. We have perused the records and have considered the submissions made by both sides. It is not in dispute that during the relevant period, every month, the appellant issued credit notes to their dealers in respect of the entire quan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry month at the rate discounted by the credit note amount. There was no further amount paid or payable over and above that net amount. Therefore, the discounted amount, net of the credit note, was required to be treated as assessable value. Since original payment of duty was based on amounts higher than the transaction value, the appellant was rightly eligible for refund of duty paid on the excess amounts. Since the credit notes indicated not only revised prices, but also Cenvat amounts, there could also be no question of the appellant passing on higher amount of excise duty to the buyers. Both price and duty were settled taking into account credit notes. All payments, both price and duty, were net of credit note amounts. 6. In view of wha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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