2000 (9) TMI 501

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....s of the provisions of Rule 57CC of the Central Excise Rules, 1944, the appellant is liable to pay an amount equal to 8% of the price of the said footwear charged by it for sales thereof by debiting the Modvat credit. 2. The dispute in the present appeal is as to which price has to be adopted for reversing the Modvat credit in terms of the said Rule. The Revenue's contention is that the list price of the footwear in question, after deducting sales tax and other taxes, if any, payable, has to be adopted for the purposes of the price in terms of the said Rules. On the other hand, the appellants contend that it is the actual consideration received by them from their customers which should be considered as the price charged by them and ....

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....ayment of 8% under Rule 57CC is to be calculated only on such net price which is actually charged. We fully agree with the above contention of the learned Advocate. The price as referred under Rule 57CC can never mean the gross listed price of the goods which are neither charged nor chargeable from the buyers. The expression 'price' as used in the said Rule has to necessarily mean the total consideration received by the buyer from its customer. 5. Shri Bagaria, learned Advocate also has referred to Board's Circular dated 30-6-2000 being F.No. 354/81/2000-TRU at pages M17 to M27 2000 (39) RLT = 2000 (119) E.L.T. T22 clarifying the definition of 'transaction value' as appearing in the new Section 4(3)(d). He submits that like Rule 57C....

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.... the consideration for which the goods are sold by the assessee. In a case where trade discount is allowed on the catalogue price, the sale price is the amount determined after deducting the trade discount. The trade discount does not enter into the composition of the sale price, but exists apart from and outside it and prior to it. It is immaterial that the definition of 'sale price' in Section 2(h) of the Act does not expressly provide for the deduction of trade discount from the sale price. Indeed, having regard to the circumstance that the sale price is arrived at after deducting the trade discount, no question arises of deducting from the sale price any sum by way of trade discount." 7. Similarly, in the case of Deputy Commissi....