2011 (1) TMI 1316 - AT - Central Excise

Tribunal rules in favor of appellant, upholding turnover discount eligibility.

MACCA BRAKES AUTOMOTIVE PVT. LTD. Versus COMMISSIONER OF C. EX., DELHI-IV

The Tribunal ruled in favor of the appellant, stating that the denial of turnover discount by the Revenue was unjustified. The appellant's eligibility for ... - Issues involved: The issue involves the denial of turnover discount by the Revenue due to the appellant not requesting provisional assessment u/s the Customs Act.Summary:Issue 1: Denial of turnover discountThe appellant cleared goods from factory to depot with a discount structure of 30% at the time of sale from depot and 7% at year end. The Revenue disputed the turnover discount due to lack of request for provisional assessment. The amount in dispute was Rs. 18,12,381 with an equal penalty imposed. The Tribunal noted that the eligibility for turnover discount deduction from list price is well settled by the Supreme Court. The nature of turnover discount implies that the quantum is known only towards the year end. The Supreme Court has affirmed that turnover discount is an eligible deduction for arriving at assessable value. The failure to follow provisional assessment procedure does not justify denying a benefit already settled by law. The Tribunal held that there was no merit in the demands confirmed by the Revenue, and the appeal was disposed of without the requirement of depositing duty and penalty.Conclusion:The Tribunal decided in favor of the appellant, holding that the denial of turnover discount by the Revenue was not justified, and the appeal was disposed of without the need for duty and penalty deposit.