TaxTMI 
TaxTMI 
2011 (3) TMI 1214
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....the years 1992-93 to 19996-97 for approval by the jurisdictional Assistant Commissioner, wherein they have claimed deduction under 15 accounts. The assessments were kept provisional at that time. The Assistant Commissioner vide order dated 30/04/97 allowed the claim of the assessee in respect of 10 accounts and disallowed the following balance 5 discounts in respect of (i) Special Secondary Packing, (ii) C & F Agent Remuneration (ii) Quantity discount (iv) Discount on damages (v) Handling charges. 3. The party went in appeal before the Commissioner (Appeals) who remanded the case for denovo adjudication vide order dated 27/05/2008 and the Assistant Commissioner vide his order dated 31/08/98 disallowed the quantity discount a....
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....Commissioner issued a show-cause notice dated 25/02/2003 for the rejection of the refund. Since the assessee took some time for replying to the show-cause notice and sought extension time for personal hearing, the Assistant Commissioner without hearing the assessee passed an order dated 22/04/2003 rejecting their claim only on the ground that the encashment of bank guarantee for disallowance of quantity discount cannot be equated or termed as pre-deposit under Section 35F of the Central Excise Act, 1944 and the assessee was required to file required refund claim in format R-1 prescribed under Rule 173S of the Central Excise Rules, 1944. 4. The assessee filed an appeal before the Commissioner (Appeals), who upheld....
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....ies Pvt Ltd., Vs. CC Jamnagar, reported in 2009 (237) ELT 152 (Tri.) wherein it has been held that in the case of provisional assessment furnishing of security in the shape of bank guarantee or otherwise is to be treated as payment of duty in anticipation of finalization of duty liability, and the same cannot be regarded as pre-deposit within the meaning of Section 129E of the Customs Act, 1962. 7. We have considered the rival submissions. 8. In the instant case, the goods were assessed to duty provisionally and the assessee had executed a bond and bank guarantee for the provisional assessment in terms of 9 (B) of the Central Excise Rules, 1944. Rule 9 (B) (5) specifically provides when the provis....
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....e law or in accordance with the circular/instructions issued by the Board. 9. In the Oswal Agro Mills case the apex Court held as follows:- The bank guarantee is security for the Revenue, that in the event the Revenue succeeds its dues will be recoverable, being backed by the guarantee of a bank. In the event, however, unlikely, of the bank refusing to honour its guarantee it would be necessary for the Revenue or, where the bank guarantee is in favour of the principal administrative officer of the Court, that officer to file a suit against the bank for the amount due upon the bank guarantee. The amount of the disputed tax or duty that is secured by a bank guarantee cannot, therefore, be hel....