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of <h1>Tribunal dismisses appeals, grants waiver & stay amid conflicting court decisions</h1> <h3>HINDUSTAN LEVER LTD. Versus CCE, PONDICHERRY</h3> The Tribunal dismissed the appeals without costs, following a Supreme Court judgment favoring the exclusion of certain deductions from the assessable ... Stay/Dispensation of pre-deposit - Valuation Issues:1. Whether the deduction claimed for damages in the assessable value of goods is valid.2. Applicability of judgments in Commissioner of Central Excise v. Hindustan Lever Ltd. and Union of India v. Bombay Tyres International Pvt. Ltd.3. Conflict between judgments of different benches of the Supreme Court.4. Granting waiver of pre-deposit and stay of recovery of duty amount.Analysis:1. The case involved a demand for a differential duty on toilet soaps cleared from the factory to depot. The appellant claimed deduction for damages suffered by the goods in transit, described as 'discount allowed for wholesale dealers for damages suffered in transit.' The appellant argued that this deduction should be treated as a trade discount and excluded from the assessable value of the goods. The appellant relied on a Supreme Court judgment which supported the exclusion of such deductions from the assessable value.2. The Tribunal noted that the Supreme Court's judgment in Commissioner of Central Excise v. Hindustan Lever Ltd. and Union of India v. Bombay Tyres International Pvt. Ltd. supported the appellant's position regarding the permissibility of deductions like trade discounts and reductions based on damage to goods suffered in transit. The Tribunal favored following the later judgment of the Supreme Court from 2005 over the earlier judgment from 2001, as it was more favorable to the assessee.3. The Tribunal acknowledged the conflict between judgments of different benches of the Supreme Court. The appellant cited a Kerala High Court judgment in Binani Zinc Ltd. v. Asstt. Collector, which supported granting waiver of pre-deposit and stay of recovery in cases where there is a conflict of decisions between coordinate benches of the Supreme Court. Based on this, the Tribunal inclined to grant waiver of pre-deposit and stay of recovery of the duty amount.4. Ultimately, the Tribunal dismissed the appeals but without any order as to costs, following the Supreme Court's judgment in favor of the assessee regarding the exclusion of certain deductions from the assessable value of goods. The Tribunal granted waiver of pre-deposit and stay of recovery of duty amount based on the decision cited by the appellant.This detailed analysis of the judgment highlights the key issues addressed and the Tribunal's decision based on relevant legal precedents and considerations.
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