TaxTMI 
TaxTMI 
2016 (2) TMI 67
X X X X Extracts X X X X
X X X X Extracts X X X X
....997 (92) ELT 309 (SC) and on the decision of the Tribunal in the case of Camphor & Allied Products Vs. Commissioner of Central Excise - 2000 (122) ELT 171 (T). They also relied on the CBE&C Circular dated 30.6.2000. 2. Learned Counsel for the appellant argues that assessable value in such circumstances should be the assessable value arrived at when goods were sold from the depot to the independent customer i.e. the price after allowing the quantity discount. He relied on Rule 7 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000, which reads as follows: - "Rule 7. Where the excisable goods are not sold by the assessee at the time and place of removal but are transferred to a depot, premises of a consignment agent or any other place or premises (hereinafter referred to as "such other place") from where the excisable goods are to be sold after their clearance from the place of removal and where the assessee and the buyer of the said goods are not related and the price is the sole consideration for the sale, the value shall be the normal transaction value of such goods sold from such other place at or about the same time and, where such goods are....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on 4 has to be read along with the expression "for delivery at the time and place of removal" It is clear, therefore, that what is paramount is that the value of the excisable goods even on the basis of 'transaction value' has only to be at the time of removal, that is, the time of clearance of the goods from the appellant's factory or depot as the case may be. The expression "actually paid or payable for the goods, when sold" only means that whatever is agreed 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 sale. Once this becomes clear, what the learned counsel for the assessee has argued must necessarily be accepted inasmuch as cash discount is something which is "known" at or prior to the clearance of the goods, being contained in the agreement of sale between the assessee and its buyers, and must therefore be deducted from the sale pri....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mended introduces the concept of 'transaction value' so that on each removal of excisable goods, the 'transaction value' of such goods becomes determinable. Whereas previously, the value of such excisable goods was the price at which such goods were ordinarily sold in the course of wholesale trade, post amendment each transaction is looked at by itself. However, 'transaction value' as defined in sub-clause (3)(d) of Section 4 has to be read along with the expression "for delivery at the time and place of removal". It is clear, therefore, that what is paramount is that the value of the excisable goods even on the basis of "transaction value" has only to be at the time of removal, that is, the time of clearance of the goods from the appellant's factory or depot as the case may be. The expression "actually paid or payable for the goods, when sold" only means that whatever is agreed 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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s 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" has held that though the turnover discount is determined on half yearly basis depending upon the volume of purchases made by the dealers, 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 new Section 4 with effect from 1-7-2000 in which the assessable value is the transaction value of the goods, does not has a specific provision for deduction of trade discounts, the concept of transaction value, by its very nature would include the deduction of trade discount and, therefore, the judgment of Honble Supreme Court in the case of Union of India v. Madras Rubber Factory (supra) would be applicable. The same view with regard to turnover discount has been taken over by this Tribunal relying upon the above mentioned judgment of the Hon'ble Supreme Court in the case of Commissioner of Central Excise v. Goetze (India) Ltd. (supra). In view of this, if in this case during the period ....