Final Order No. A/547/2001-Nb, arising from Appeal No. E/957/2001-Nb. Case: Malwa Cotton Spg. Mills Vs Commr. Of C. Ex., Chandigarh. CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)
| Case Number | Final Order No. A/547/2001-Nb, arising from Appeal No. E/957/2001-Nb |
| Counsel | For Appellant: Shri K.K. Anand, Advocate, And For Respondent: Shri Mewa Singh, Sdr, |
| Judges | Shri Lajja Ram, Member (T) And P.S. Bajaj, Member (J) |
| Issue | Central Excise Act, 1944- Section 4 |
| Citation | 2001 (132) ELT 671 (Tri. - Del.) |
| Judgement Date | Thursday July 12, 2001 |
| Court | CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal) |
Order:
P.S. Bajaj, Member (J), (Northern Bench, New Delhi)
1. This Appeal Has Been Preferred By The Appellants M/S. Malwa Cotton Spg. Mills Ltd. Against The Impugned Order Dated 30 Jan 2001 Passed By The Commissioner (Appeals) Vide Which He Had Confirmed The Order-In-Original, Dated 28-9-1999 Of The Deputy Commissioner And Disallowed Deductions On Account Of Dyeing Charges, Trade Discount And Cash Discount From The Assessable Value Of Their Final Product I.E. Cotton Yarn, Manufactured By Them.
2the Facts Leading . To The Filing Of The Present Appeal May Briefly Be Stated As Under:
3.The Appellants Are Engaged In The Manufacture Of The Cotton Yarn Falling Under Chapter 52 Of The Ceta. They Opted For Provisional Assessment As They Were Transferring The Stock Of The Cotton Yarn To Their Sale Depots Located At Various Places. They Had Been Paying Central Excise Duty On The Said Yarn On The Tentative Value At The Factory Gate. At The Time Of The Final Assessment For The Period 1-10-1996 To 31-3-1997, They Were Disallowed Deductions In All Of Rs. 26,11,009/- From The Assessable Value Of The Goods (Cotton Yarn) On Account Of Octroi Charges, Dyeing Charges, Trade Discount And Cash Discount. The Deputy Commissioner Through Order-In-Original Rejected Their Claim For Refund Of The Amount. They Then Challenged That Order Of The Deputy Commissioner In Appeal Before The Commissioner (Appeals) Who Modified The Same By Allowing Deductions On Account Of Octroi Charges, But Disallowed The Deductions On Account Of Dyeing Charges, Trade Discount And Cash Discount, Through The Impugned Order.
2.The Appellants Have Come Up In Appeal Before The Tribunal.
3. We Have Heard Both The Sides And Gone Through The File.
5. So Far As Entitlement Of The Appellants To The Deductions On Account Of Trade Discount And Cash Discount From The Assessable Value Of The Goods (Cotton Yarn) Is Concerned, The Same Have Not Been Contested Before Us. It Has Not Been Disputed By The Learned Sdr That These Deductions Are Permissible Under The Law To Them. Even The Learned Commissioner (Appeals) In The Impugned Order Has Not Been Disputed That These Deductions, Are Not Available Under The Law, To An Assesse. In Union Of India & Others V. Bombay Tyre International Pvt. Ltd. - 1984 (17) ELT 329 (S.C.) The Apex Court Has Also Ruled Out That "Discounts Allowed In The Trade (By Whatever Name Such Discount Is Described) Should Be Allowed To Be Deducted From The Sale Price And Such Trade...
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