TaxTMI 
TaxTMI 
2007 (12) TMI 83
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.... of the respondents and later sold to industrial consumers. The respondents are the manufacturers of bonded abrasives and coated abrasives and also another products called Cimcool. All these products are excisable. The appellants cleared the goods from the factory directly and also the goods were stock transferred to depots and from depots the goods were sold to various dealers. The present appeal concerns the sale of the goods to industrial consumers. Normally, the goods are sold from the factory to the industrial consumers and the industrial consumers do not get discount in respect of bonded abrasives but in respect of coated abrasives, a discount of 12.5% is given to the industrial consumers. However, the dealers are given a discount of ....
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.... the sales from the depot is apportioned to the industrial consumers. Further, at the time of removal of the goods from the factory, the respondents would not be knowing whether they would be selling the same to the industrial consumers. In these circumstances the Commissioner (Appeals) did not find any merits in the orders of the Lower Authorities and set aside the demand of duty. Revenue is aggrieved over the order of the Commissioner (Appeals) on the following grounds :- (1) The Commissioner's (Appeals) order does not appear to be correct as it does not follow from the reasoning given The order states that once duty is determined at the time of removal from the factory to the depots, reckoning their valuation relevant for that particul....
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....filed their cross-objections and reiterated that Revenue's grounds of appeal do not merit serious consideration as they are contrary to law. 4. None appeared for the respondents. Ms. Sudha Koka learned SDR appeared for the revenue and reiterated the contentions given in the grounds of appeal. 5. On a very careful consideration of the issue, we find that when the goods are stock transferred from the factory, to the depot, duty is to be paid in terms of Section 4(b) read with Valuation Rules. The time of removal in respect of goods removed from the place of removal shall be deemed to be the time at which such goods are cleared from the factory. When the coated abrasives are removed from the factory to the depot, duty liability has to be dis....