2011 (4) TMI 905

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....s purchased by appellants from Pepsi Foods Ltd. The Appellants are also purchasing sugar from outside. The sugar is mixed with hot water to get liquid sugar (sugar syrup). The soft drink concentrate purchased by appellants is mixed with liquid sugar. The mixture of soft drink concentrate and sugar syrup is called final syrup. This final syrup is mixed with water and carbon dioxide at a particular pressure and at low temperature to get aerated water which is filled in bottles and sealed with crown. The aerated water is cleared on payment of appropriate duty. The mixture of soft drink concentrate and sugar syrup is generally consumed within appellants factory for the manufacture of aerated water. However, certain quantity of this mixture is p....

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....liters the wholesale price was declared as Rs. 1,753.99. From this price appellants claimed deduction towards excise duty and sales tax payable on the goods and arrived at the assessable value as Rs. 1,086.60. The appellants paid duty on Rs. 1,086.60 in respect of 1 unit of Pepsi BIB syrup of 20 litres cleared. On 25/09/1999, the appellants filed another 2 price declarations wherein appellants declared the price at which PCIM was selling the BIB syrup to their wholesale dealers as the basis for determination of the assessable value. From this sale price of PCIM, deductions were claimed in respect of trade discount allowed by PCIM, excise duty and sales tax payable to arrive at the assessable value. The price declarations filed on 12.02.2001....

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....ount allowed by PCIM to their buyers should be allowed to be deducted to arrive at the assessable value. The CESTAT also held that the machine usages charge is a consideration for separate activity distinct from the manufacturing activity and therefore cannot be included in the assessable value of BIB syrup. On an appeal filed by the Revenue against the aforesaid order of CESTAT, the Hon'ble Supreme Court upheld the aforesaid order of the CESTAT. The judgment of the Hon'ble Supreme Court is reported at 2009 (234) ELT 385 (SC).   3. However, subsequently the issue was taken up once again by the department and even though the demand for duty on machine usage charges also made, the Commissioner in the impugned order dropped the demand re....

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....nvoices discount was actually shown to have been passed on but we also found that the invoices related to the periods subsequent to 2001. In any case, there are no observations of the Commissioner on the submission that Chartered Accountant had verified the records and certified that the trade discount had been passed on. Further, we also find that the price declaration, the marketing pattern declaration, the invoices and the Chartered Accountant's statement which really formed basis of the whole case against the appellant has not been considered in depth and in detail. Further, there is also no discussion as to the correct legal position with regard to the admissibility of discount when the same is not incorporated in the price declaration....