2003 (9) TMI 442 - AT - Central Excise

Tribunal rules on abatement for damages and bank charges, rejects exclusion of interest on receivables.

The Tribunal ruled in favor of the Revenue, overturning the Commissioner's decision to grant abatement towards discount on damages in transit. The ... Valuation - Damage discount Issues:- Abatement towards discount on damages- Bank charges- Interest on receivablesAbatement towards discount on damages:The Commissioner initially allowed the assessee's appeal, granting abatement towards discount on damages in transit. However, the Revenue contested this decision, arguing that the order was not in line with relevant judgments, specifically citing a Supreme Court judgment. Both the Revenue's representative and the Respondent's consultant agreed that the abatement on damages should not have been granted. The Tribunal reviewed the judgments cited and concluded that the Commissioner erred in allowing the abatement. Consequently, the Tribunal modified the impugned order, ruling that the assessee was not entitled to claim abatement towards discount on damages in transit.Bank charges:The Revenue did not challenge the Commissioner's decision regarding abatement of bank charges. As there was no appeal on this point, the Tribunal confirmed the Commissioner's findings on the grant of abatement for bank charges.Interest on receivables:The Revenue sought exclusion of interest on receivables, which was also supported by the Respondent's consultant. However, the Tribunal upheld the Commissioner's decision on this matter, deeming it to be a correct order. The Tribunal also confirmed the Commissioner's observation that the assessments were provisional and needed to be finalized, a point not contested by the Revenue. Therefore, the Tribunal allowed the appeal to the extent that the assessees were not entitled to abatement towards discount on damages in transit. The impugned order was modified accordingly, and the appeals were disposed of in line with the Tribunal's findings.