9911796707
TMI Blog2003 (12) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... roduction of new provisions in 1-7-2000 and thereafter. However, the special provision is applicable only in cases where the goods were exclusively sold to or through related persons and not otherwise. This is clear from the wording of the provisions themselves. In any event, even if the valuation was sought to be made based on the sale price of the related person, there was no warrant to refuse deduction of discount. Assessable value under the law is the net price received by the assessee or its related person and not the gross price. It is well settled that all discounts by whatever name they are called are eligible for deduction from the gross price for the purpose of assessment of the goods, provided the discounts are known in advance a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich is a mixture of soft drink concentrate and sugar. This syrup is liable to Central Excise duty under Heading 21.08 of the Central Excise Tariff. The syrup in question is packed in Bag in Box (BIB) containing 20 litres per BIB and is dispensed to consumers after dilution and carbonation by retailers through dispensing machines. The appellants sell the syrup to their marketing subsidiary M/s. Pepsi Cola India Marketing Company and the marketing subsidiary sells to retailers. Part (2-3%) of the syrup produced is also sold ex-factory to two independent distributers M/s. Sheena Agencies, Kalyan (West) and Thirst Quenchers Karjat. 2.The issue raised in this appeal is the valuation of the syrup to Central Excise duty. The dispute turns on two e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess the goods sold to related persons at a different price. The appellants submit that since there were sales to independent buyers, those prices should constitute the assessable value of all the goods. During the hearing of the case it was emphasised that the Revenue authorities have not disputed the sale prices to two distributors as in any way being non-commercial prices. Therefore, these prices would form the assessable value for the goods sold to the related party also. 5.It has also been submitted that, in any event, discounts extended by the appellant's subsidiary to the buyers should have been deducted while assessing the goods to Central Excise duty. It is the appellant's submission that, for discount to become eligible for deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ales to two dealers. Therefore, this is not a case where the excisable goods are "not sold except to or through a related person". It is the appellant's contention that Central Excise Valuation Rules, 2000 has no application to the present case and all the goods were required to be assessed at the price at which they were sold to unrelated buyers. 7.With regard to the inclusion of lease charged for the dispensing machine in the assessable value of the syrup, it is the appellant's contention that leasing of dispensing machine by the subsidiary company is an entirely different transaction from the appellant-assessee's transaction in the manufacture and sale of syrup. It is their submission that consideration received for such a separate activ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prior to the introduction of new provisions in 1-7-2000 and thereafter. However, the special provision is applicable only in cases where the goods were exclusively sold to or through related persons and not otherwise. This is clear from the wording of the provisions themselves. Proviso 3 to Section 4(1)(a) (prior to amendment) read as under :- "(iii) Where the assessee so arranges that the goods are generally not sold by him in the course of wholesale trade except to or through a related person, the normal price of the goods sold by the assessee to or through such related person shall be deemed to be the price at which they are ordinarily sold by the related person in the course of wholesale trade at the time of removal, to dealers (not bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e gross price. It is well settled that all discounts by whatever name they are called are eligible for deduction from the gross price for the purpose of assessment of the goods, provided the discounts are known in advance and are not returnable. Uniformity is not a criterion at all. In the present case no contention has been raised that these discounts were not actually given or that they were returnable. In fact, the discounts were given in the invoices at the time of sales themselves. Therefore, the denial of the discounts was clearly against settled law. 11.We find no authority for the inclusion of the lease charges on the dispensing machine in the assessable value of syrup. Sale of syrup and leasing of dispensing machine are two separat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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