1992 (1) TMI 237

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....JDR, for the Respondents. [Order per : S.V. Maruthi, Member (J))]. -  The dispute relates to the deduction of trade discount and freight from the price. 2. The appellants manufacture asbestos cement products. They have filed price list No. 18/83-84 under Pt. I on 15-11-1983 effective from 1-12-1983. The Assistant Collector without issuing a show cause notice approved the price by dis....

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.... discount of 5% of the stockist price inclusive of duty was declared in the Circular and cash discount 1.72% of sale price exclusive of duty with cash discount of 1.5% of stockist price inclusive of duty. The said discount was claimed in accordance with the normal practice at the time of removal of goods. These discounts were declared in the price list as well as in the contracts with the stockist....

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....t note. This action is not in confirmity with the provision of Section 4(4)(d)(ii) of the Central Excises and Salt Act, 1944. Therefore, they are not entitled to the deductions in this regard. Holding as above, he rejected the claim of the appellant. As regards the claim of the appellants in respect of freight he held that since the appellants have a price at the factory gate under Part I they are....

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....wable deduction. 9. According to the learned Judges the ground that "since the manufacturer was giving additional discount by issuing credit notes the rejection of claim for deduction of additional discounts deserves to be struck down". Further under the clarificatory order of the Supreme Court as reported in [1984 (17) E.L.T. 239][i] which expressly holds that the discount need not be reflecte....