TaxTMI 
TaxTMI 
2005 (5) TMI 483
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....f Tungsten Carbide Tips (TC Tips). The adjudicating authority held that the discount given by the appellants to M/s. Rasta (India) Ltd. (hereinafter referred to as M/s. RIL) is very high and also conditional and hence the same would not be allowed. Invoking proviso to Section 11A of the Central Excise Act, 1944, he confirmed a demand of duty amounting to Rs. 27,45,835/- on the appellants. He imposed equal penalty under Section 11AC of the Central Excise Act, 1944. Interest under Section 11AB was also demanded. Penalty of Rs. 1,00,000/- was imposed on the appellants under Rule 173Q of the Central Excise Rules, 1944. The appellant strongly challenge the impugned order.  3.Shri G. Shivadass, learned Advocate appeared for the appellants....
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....t. The following case laws were relied on :- (a) Metal Box Ltd. v. CCE, Madras [1995 (75) E.L.T. 449 (S.C.)] (b) Addison & Co. v. CCE, Chennai [2002 (149) E.L.T. 1388] (c) CCE Meerut v. Shri Ram Piston & Rings Ltd. [1999 (107) E.L.T. 380] (d) Ind-Sphinx Precision Pvt. Ltd. v. CCE, Chandigarh [1994 (74) E.L.T. 683] (5) The price on which the tips had been sold by the appellants to M/s. RIL is in line with the price prevailing in the market. The appellants have submitted evidence to indicate that the other manufacturers also offer the tips at similar prices. Once the price is in line with the market price, the....
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....her customers. After 1994, they have been filing invoices along with RT-12 returns. Thus the Department was aware of the price at which the goods have been sold by the appellants to different customers. There is no suppression of the fact with an intent to evade payment of duty. Since the duty paid by the appellants, in any case, would be taken as Modvat credit by M/s. RIL, the entire exercise appears to be revenue neutral. Moreover the appellants would not have had any intention to evade payment of duty of a small amount of Rs. 5 lakhs per year when compared to their annual duty payment of Rs. 20 - 40 crores per year. In view of the above, the learned Advocate submitted that there is no suppression, fraud, collusion, etc. and therefore, th....
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....ve also shown evidence to show that as far as other customers are concerned, they are given at least a minimum discount of 45%. The Revenue seeks to deny the discount on the ground that the discount given is conditional. There is no basis to deny the discount on the above grounds. The appellants have given justification for giving higher discount to M/s. RIL. From the facts of the case, we find that the higher discount given is purely on commercial grounds. It has also been demonstrated that the other manufacturers also give similar discount to tool makers. In other words, the price at which the tips were offered to M/s. RIL was favourable with the price charged by the other manufacturers of the tips. There is no finding by the Revenue that....