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of <h1>Tribunal grants relief to assessee, emphasizing need for genuine ex-factory price evidence.</h1> The Tribunal allowed the assessee's appeal, granting consequential reliefs, and dismissed the department's appeal. The judgment highlighted the ... Valuation - assessable value - ex-factory sales - Held that: - the factory gate sale prices or ex-factory price are the genuine price and they can be the basis for the assessment of the goods cleared from the depot, the confirmation of demand by the authority is contradictory to the conclusion reached by him and will not therefore sustain. The case laws relied upon by the assessee on settled law as laid down by Hon'ble Supreme Court, in Indian Oxygen case [1988 (7) TMI 58 - SUPREME COURT OF INDIA], that so long as there is a genuine ex-factory price there can be no question of taking into account the depot price for arriving at the assessable value are on all fours with the facts of this case. Disallowance of certain deductions claimed in the declarations - Held that: - when cash discount /sale rebate is available to all buyers, the same is permissible deduction. As regards abatements on interest on receivables, it is held that such interest is a post removal expense and hence a permissible deduction. With regard to abatement claimed on freight on sales, it is seen related to expenses incurred by appellant on account of freight charges from depot to the buyer's premises which are clearly post removal expenses and thereby a permissible deduction. The acceptability and genuineness of ex factory price is incorrect In the light of the discussions herein above, when it has been clearly held that the ex-factory prices are genuine prices and they can be the basis for the assessment of goods cleared from the depot, the department appeal will have no legs to stand on and cannot therefore survive - appeal of Department dismissed - decided in favor of assessee. Issues:1. Recall of Tribunal Final Order2. Assessment based on ex-factory price3. Abatements claimed by the assesseeRecall of Tribunal Final Order:The hearing of the appeals was necessitated due to the recall of the Tribunal Final Order. The department's appeal against the Order-in-Original was also being considered. The appellant had been filing price lists and declarations for assessment purposes. Several show cause notices were issued regarding deductions claimed by the appellant. The Commissioner's order was challenged, and the matter was remanded for de novo adjudication. Subsequent orders were passed, leading to multiple appeals and remands.Assessment based on ex-factory price:The issue revolved around the determination of assessable value based on the ex-factory price. The Commissioner initially held that the factory gate sales were not representative of the normal price, leading to a duty demand. However, subsequent orders and appeals highlighted the importance of establishing a genuine ex-factory price for assessment. The Tribunal emphasized the need for evidence to support claims that the ex-factory price was not genuine. Various case laws were cited to support the contention that the ex-factory price should be the basis for assessment, even for goods sold from depots.Abatements claimed by the assessee:The appellant had claimed abatements on various grounds, including cash discounts, interest on receivables, and freight on sales. The Tribunal analyzed each claim and found merit in the appellant's contentions based on settled law and relevant judgments. The Tribunal concluded that the impugned order confirming duty liability and imposing penalties needed to be set aside. The department's appeal was dismissed based on the genuineness of the ex-factory price as the basis for assessment.In conclusion, the Tribunal allowed the assessee's appeal with consequential reliefs and dismissed the department's appeal. The judgment emphasized the importance of establishing a genuine ex-factory price for assessment purposes and upheld the appellant's claims regarding abatements based on legal precedents and settled principles.
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