TaxTMI 
TaxTMI 
2010 (7) TMI 363
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.... manufactured by them to their depots from where the same are sold and the duty is paid by them at the time of clearance from their factory on the price prevailing at depot at the time of removal. However, both the respondents claimed that they were giving turnover discounts to their customers which are finalised at the end of financial year. The quantum of turnover discount available to a customer depends upon the quantum of sales to him. The respondents, however, while paying duty on the goods at the time of their clearance to depot were claiming deduction towards turnover discount at average rates varying from 3.34% to 4.94% of the depot price on provisional basis. Since the exact quantum of turnover discount could be known only at the e....
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....xcise Duty demand of Rs. 56,62,809/- against M/s. Goetze (India) Ltd. alongwith interest and duty demand of Rs. 5,09,790/- alongwith interest against M/s. Escorts Pistons Ltd. Both the appellants filed appeals to the Commissioner, Central Excise (Appeals), Chandigarh, who disposed of these appeals by a common order-in-appeal No. 67/CE/CHD/2005 dated 28-2-2005, by which the appeals were allowed and the duty demands were set aside. It is against this order of the Commissioner (Appeals) that these two appeals have been filed by the Revenue. 2. Heard both the sides. 2.1 Shri Nitin Anand, the learned Departmental Representative, assailing the impugned order-in-appeal, pleaded that the issue involved in these appeals is as to whether t....
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....that quantity discount is permissible only to the extent actually given and availed of and that certain discounts although originally deducted while discharging duty at the time of clearance of the goods, but were subsequently were not passed on for the reason that the buyers were not meeting the purchase targets, such discount are not eligible for deduction. 2.2 Shri R.K. Hasija, Advocate, the learned Counsel for the respondent, pleaded that while in these cases the assessable value of the goods would be their price at depot at the time of removal from the factory, the depot price has to be adopted after taken into account any trade discount, which had been given either at the time of sale or had been quantified subsequently, that ....
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....ct, as it stood during the period prior to 1-7-2000 and in which there was a specific provision for deduction of trade discount from the assessable value, has held that the deduction of trade discounts known and understood at the time of removal of goods is permissible even if the same are quantified later and in para 58 and 60 of the judgment with regard to "turnover discount" given on half yearly basis depending upon the volume of purchases made by the dealers, held that its deductions is permissible as it is known and understood at the time of removal of the goods, though it is quantified later. Though the present Section 4 w.e.f. 1-7-2000 in which the assessable value is the transaction value of the goods, does not has a specific provis....