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TMI Blog2003 (11) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that certain quantity discounts originally deducted while discharging duty at the time of clearance of the goods, did not get passed on, on account of buyers not meeting purchase targets. These amounts were therefore, not eligible for deduction and duty is payable. Duty so payable is Rs. 60,52,682/-. The lower authorities were correct in demanding this amount as short-levy. Accordingly, the demand to that extent is confirmed. With regard to penalty , it is well settled P B Pharmaceuticals [ 2003 (2) TMI 68 - SUPREME COURT] that no penalty is attracted in the case of recovery of short-levy relating to normal period as stipulated in Section 11A of the Central Excise Act. All the Show Cause Notices in the present case were issued within n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able :- (a) Wholesale/Distribution discount (b) Service discount (c) Redistribution discount (d) Cash discount (e) Turnover discount (f) Extra trade discount (g) Special discount (h) Quarterly discount (i) Regional discount The impugned order has held that these discounts like service discount, redistribution discount, special discount, extra trade discount, quarterly discount, regional discount, introduction discount are not admissible discounts. The Commissioner (Appeals) has also observed that these discounts are in the nature of incentives or are expenses for popularizing the brand and are therefore, not eligible discounts. It has also been mentioned that these discounts were not passed on and their availability is not known to the buye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on, worked out to Rs. 60,52,682/-, while during the investigation of the case the appellant had deposited a sum of Rs. 1.5 crores in April, 1998. 4. The impugned order has confirmed a penalty of Rs. 50,000/-. The submission of the appellant on this count is that all the demands in the present case were raised during the normal time limit as provided under Section 11A of the Central Excise Act. It is submitted that, to a case where demand is raised during normal period penalty under Rule 173Q of the Central Excise Act is not attracted. The appellant has relied on the decision of the Apex Court in P B Pharmaceuticals (P) Ltd. v. C.C.E. - 2003 (153) E.L.T. 14 in support of this submission. 5. Learned SDR has pointed out that it is well sett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion is without basis. The appellant had been making regular price declarations and that those declarations had mentioned various discounts. Further, the declarations also mentioned that discounts may be given at the time of sale or subsequently. From the price declaration effective from 1-2-97 we find that it had declared the following discounts : (A) Wholesale/distribution discount (B) Service discount (C) Redistribution discount (D) Cash discount (E) Turnover discount (F) Extra trade discount (G) Special discount (H) Quarterly discount (I) Regional discount The price declaration has also the following NOTE :- NOTE :- All these discounts may be given either in the invoice or through credit notes at the end of the financial year or earlier. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le discharging duty at the time of clearance of the goods, did not get passed on, on account of buyers not meeting purchase targets. These amounts were therefore, not eligible for deduction and duty is payable. Duty so payable is Rs. 60,52,682/-. The lower authorities were correct in demanding this amount as short-levy. Accordingly, the demand to that extent is confirmed. 8. With regard to penalty, it is well settled P B Pharmaceuticals (supra) that no penalty is attracted in the case of recovery of short-levy relating to normal period as stipulated in Section 11A of the Central Excise Act. All the Show Cause Notices in the present case were issued within normal period as provided under Section 11A. Therefore, imposition of penalty was not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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