2019 (11) TMI 1125 - AT - Central Excise

Unavailed Cash Discounts Excluded from Assessable Value, Tribunal Aligns with Established Precedents in Favorable Ruling.

Gujarat Guardian Versus C.C.E. & S.T. - Surat, C.C.E. & S.T. - Bharuch

The Appellate Tribunal CESTAT Ahmedabad resolved the issue of whether unavailed cash discounts declared on invoices should be included in the assessable ... Valuation - inclusion of cash discount in the assessable value - the cash discount is declared on the invoice, even though in some cases the discount was not availed by the buyer and the same was not passed on - HELD THAT:- Since on the very issue in the appellant’s own case has been decided by this Tribunal in M/S. GUJARAT GUARDIAN LTD VERSUS C.C. E-BHARUCH [2019 (8) TMI 869 - CESTAT AHMEDABAD] wherein various judgments including the Tribunal’s Larger Bench’s judgment and Hon’ble Supreme Court’s judgment in the case of Purolator India Ltd. [[2015 (8) TMI 1014 - SUPREME COURT] were relied upon and the appeal of the very same appellant was allowed. Appeal allowed - decided in favor of appellant. Issues involved: Whether cash discount declared on the invoice, but not availed by the buyer and not passed on, is liable to be included in the assessable value.Analysis:Issue 1: Cash discount inclusion in assessable valueThe Hon'ble Member (Judicial) and the Hon'ble Member (Technical) of the Appellate Tribunal CESTAT Ahmedabad addressed the common issue of whether a cash discount declared on an invoice, even if not availed by the buyer and not passed on, should be considered in the assessable value. The appellant's counsel referred to a previous order where the Tribunal allowed a similar appeal, citing the judgment of the Hon'ble Supreme Court in Purolators India Ltd. The counsel also mentioned other relevant judgments, including those of the Tribunal's Larger Bench and specific cases like Arvind Mills Ltd., JK Paper Ltd., and Gujarat Guardian Ltd.Issue 2: Judicial decision and reliance on previous judgmentsThe Tribunal considered the arguments presented by both sides and reviewed the records. Since a previous order by the Tribunal had already decided the same issue in favor of the appellant, relying on judgments including the Tribunal's Larger Bench and the Hon'ble Supreme Court's decision in Purolators India Ltd., the Tribunal found the issue no longer res integra. Consequently, following the precedent set by the Tribunal's earlier order, the impugned order was set aside, and the appeals were allowed. The decision was dictated and pronounced in the open court.This detailed analysis of the judgment highlights the legal reasoning and precedents relied upon by the Appellate Tribunal CESTAT Ahmedabad in resolving the issue concerning the inclusion of cash discounts in the assessable value, providing a comprehensive overview of the case and its implications.