2000 (8) TMI 465

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....xure to the show cause notice is reproduced below in toto : "M/s. Microtronics (I) Ltd., Pune having Registration No. 1006070357 are the manufacturers of goods namely "Microwave Oven" and parts thereof falling under Chapter sub-heading 8516.00 of CETA, 85. The assessee has declared prices in Part I and Part II of price list frequently as per the provisions of Sec. 4 of CESA, 1944. On going through the price lists & GPs, it is observed that the assessee has declared the prices in Part I to the customers other than the class of buyers namely govt., semi-govt. & individual consumers. The assessee is also not manufacturing the goods as per customers' specification/requirement. The assessee is supposed to sell the goods to said customers at P....

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....nt was available or not. Citing the Supreme Court decision in the case of Bombay Tyres International, the Collector held that as long as the discounts were based on commercial practice, they could not be denied. The claim made by the Revenue is as follows : "The assessee is banking upon the idea that depending upon the quantities lifted by their customers, suitable discounts can be given as per their discretion. The aspect is legally improper. It is evident that Section 4 does not admit all the actual prices being charged to different customers as "normal prices" even if these are genuine. Sec. 4 is till based upon the concept of certain 'notional price' which has to be termed as the "normal price" to be applied uniformly, to a class of bu....