2002 (4) TMI 493

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....er : G.R. Sharma, Member (T)]. - Revenue has filed these three appeals assailing the order of the learned Commissioner (Appeals) holding as under : "9. Thus in view of the above finding, it is held that the impugned orders passed by the adjudicating authority suffer from legal infirmity and, therefore, cannot be upheld. They are, therefore, set aside and the appeals are allowed." The Orde....

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....d show cause notices stating as to why shrinkage should not be disallowed and why penalty should not be imposed. The Deputy Commissioner while adjudicating the case disallowed the shrinkage in terms of lengths and pieces and imposed a penalty. 3. Arguing the case for Revenue Shri M.M. Dubey, learned DR submits that the respondents herein claimed deduction of shrinkage as a percentage of the ....

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....e under law and therefore, it was observed by the learned Commissioner (Appeals) that shrinkage is not at all liable under law the same may be allowed as trade discount. Learned DR submits that learned Commissioner (Appeals) has not correctly appreciated the problem and has erred in holding that a shrinkage in length or number are equivalent to cash discount, trade discount, quantity discount or p....

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.... no allowance could be given on further shrinkage. 6. Insofar as clearing of higher number of pieces than those on which duty was paid and treating it as quantity discount we cannot agree with this finding. This is misunderstanding of the concept of quantity discount. Quantity discount is admissible in case where a large number is ordered and cannot be given in cases where larger number is c....