Dependent Agent PE unresolved for lack of factual inquiry; arm's-length distribution accepted; royalty claim rejected; 15% refund interest (Section 24...
Exemption under s.10(23C)(iiiad) upheld; appeal allowed, interest and dividends excluded from annual receipts, disallowance deleted, capital gains exe...
CESTAT allowed the appeal and set aside the impugned order. It held that valuation could not be on transaction value under s.4(1)(a) as removals were stock transfers; valuation fell under s.4(1)(b) read with Rule 7. Discounts known at or before removal, whether via invoice or post-clearance credit notes, qualified as permissible deductions from assessable value where genuinely passed to buyers, supported by ledgers and policies. The departmental disallowance of such discounts and consequent differential duty demand was unsustainable; interest on those disallowed demands was not exigible. Payments of differential duty with interest voluntarily made by the Appellant were considered non-refundable. Appeal allowed.
CESTAT allowed the appeal and set aside the impugned order. It held that valuation could not be on transaction value under s.4(1)(a) as removals were stock transfers; valuation fell under s.4(1)(b) read with Rule 7. Discounts known at or before removal, whether via invoice or post-clearance credit notes, qualified as permissible deductions from assessable value where genuinely passed to buyers, supported by ledgers and policies. The departmental disallowance of such discounts and consequent differential duty demand was unsustainable; interest on those disallowed demands was not exigible. Payments of differential duty with interest voluntarily made by the Appellant were considered non-refundable. Appeal allowed.
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