2007 (3) TMI 122

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....63 of the Schedule to the CETA, 1985, on account of - (1) Bonus to dealers, (2) Commission to agents, (3) Freight and transportation charges, and (4) Bank charges, and penalties of amounts equal to duty have been imposed thereon. Details of the demands and penalties are as under :- Appeal No. Period Bonus to dealers (Rs.) Commission to agents (Rs.) Freight & transportation charges (Rs.) Bank charges (Rs.) Total duty amount (Rs.) Penalty imposed (Rs.) A B C D E F G H E/3230 /04 Oct. 98 to Feb. 99 67,13,278 56,55,875 2,45,907 8,36,086 C÷D+E+F 1,34,51,146 1,34,51,146 E/3231/04 Mar.99 to Jun.99 30,54,516 25,73,402 1,11,888 3,79,776....

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.... account of bank charges, the contention that the facts in the present case are distinguishable from those in the Tribunal's earlier order dated 8-4-2005 disallowing such deduction, requires to be accepted for the reason that the sales policy by the appellants relating to the years 1998 and 1999 provides that "A sum of Rs. 1.25 per Rs. 100/- or fraction there of will be charged in the invoices for processing bills if negotiated through banks, and in lieu thereof the drawees will not have to bear any negotiation for postal charges", from which it is clear that the appellants are entitled to charge a sum of Rs. 1.25 per Rs. 100/- in their invoices for processing bills. The deduction claimed on account of bank charges in the present case do no....

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.... account of permitted element of expenditure as per the decision of the Hon'ble High Court in Writ Petition No. 359 of 1983 and the decision dated 9-1-1997 of the Apex Court, passed in appeal against the High Court's order, in their letter dated 9-6-1997. By another letter dated 12-6-1997, they claimed deduction towards freight, transportation, bonus to dealers/commission to agents and interest on bank charges, enclosing copy of the Bombay High Courts' order and the Supreme Court's order. The said letter claimed deduction of 5.8% based on the previous year's expenditure on the above mentioned heads, also stated that Chartered Accountant's certificate regarding availment of deduction would be filed in due course. By letter dated 1-7-1998, th....