2016 (1) TMI 272

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....ndran This appeal is directed against Order-in-Appeal No. CEX.XI/JMJ/97/APL/NSK/05 dated 12.05.2005 passed by the Commissioner of Central Excise & Service Tax (Appeals), Nashik. 2. Heard both sides and perused the records. 3. The issue involved in this case is regarding valuation of the products manufactured and cleared by the appellant. It is the case of the appellant that they are eligible fo....

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....efore the Apex Court. The Hon'ble Apex Court in their judgment dated 25.8.2015 as reported at - set aside the order of the Tribunal in so far as it rejected the contention on the cash discount. We reproduce the relevant paragraphs from the Apex Court judgment:- "18. It can be seen that Section 4 as amended introduces the concept of "transaction value" so that on each removal of excisable goo....

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....ed to as the price for the goods forms the basis of value, whether such price has been paid, has been paid in part, or has not been paid at all. The basis of "transaction value" is therefore the agreed contractual price. Further, the expression "when sold" is not meant to indicate the time at which such goods are sold, but is meant to indicate that goods are the subject matter of an agreement of s....

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....rice". "...Some assessee may give to all his buyers cash discount, that is a discount for prompt payment. In other words, they charge a somewhat lesser price where there is cash payment, but charge a higher price (i.e. without deduction of the cash discount) if the payment is not made in cash. In such cases, the cash discount, if allowed, will be admissible on the principle that only the net pr....