TaxTMI 
TaxTMI 
2017 (2) TMI 56
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....missioner of Central Excise (Appeals), Mumbai. 2. Since the issue involved in these cases is same and in respect of very same assessee, all these appeals are disposed of by a common order. 3. The relevant facts arise for consideration are appellant was engaged in manufacturing of excisable goods falling under Chapter Heading 84 & 85 of CETA 1985 and sell the products through sales agent appointed for different area and also sell directly to the customers. In case of sales made directly to the customers, the concerned sales agent in the area is given a commission of 10% to 20% depending upon the product and the amount of commission is loaded in the assessable value. In case of sales made to the sales agent a discount of 10% to 20% is s....
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....ame for a commission. He would submit that there is no dispute with respect to the sales transactions entered with ultimate buyers either directly or through sales agents. He would submit that the commission of to is given to the sales agent as he procures the orders, collecting payment, following with purchase orders, and also attending the complaint that may arise from the ultimate customers. He would submit that this commission given to sales agent is already included in the assessable value of the machines sold directly and excise duty is discharged; which he submits is not in dispute. It is his submission that the dispute is regarding the sales made directly to the selling agent. He would submit that the selling agent also purchases th....
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....0 (SC) which is rendered in the context of old Section 4 of the Act and overruled the Larger Bench decision of the Tribunal in the case of Maruti Suzuki which held that after sale service charges are includable in the assessable value, He would submit that the Hon'ble Supreme Court in the case of India Ltd. - 2015 (323) ELT 227 has settled the law that the provisions of old Section 4 and new Section 4 are not different in terms of eligibility of permissible deductions. 4.2 It is his submission that in view of the law settled by the Apex Court in the case of TVS Motors Coe Ltd (supra), the appeals may be allowed and the impugned orders are to be set aside. 4.3 Learned on the other hand, would draw our attention to the impugned orde....
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....n the assessable value because they were not in the nature of the trade discount. It is his submission that the amounts shown in the invoices of the sales agents are nothing but commission are not trade discount hence the decision of the Azad Rubber Company Pvt Ltd - 1988 (36) ELT 528 (Cal.), Deekeens Polyesters P. Ltd. - 2009 (234) ELT 129 (Tri. - Ahmd.) will apply. 4.4 After hearing both sides for sometime on the merits of the case and on perusal of the records, we find that the issue involved in this case is regarding demand of duty on the amounts deducted by the appellant as trade discount from the invoices issued to the sale agent. It is the case of the Revenue that this amount deducted as trade discount is nothing but commission wh....
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....rein for resale. We find strong force in the contention raised by the learned Counsel that the statement of Shri Paul D'Souza, Accounts Manager of the appellant (page 13 of the appeal book) clearly brings the fact that they sell goods directly to the customers for the order placed and also sell their goods to sales agents. The sales agents become entitled to the commission when order is procured through sales agents. In the same statement it is also made clear that another set of transaction which is of sale on principal to principal basis to the very same persons who are acting as agents and the said transaction are at arms length. We have noted that one of the dealer Shri Bhagvat in his statement clearly indicated that the relation be....
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....Act, 1944. We find that the Apex Court in the case of Philips India (supra) has categorically stated that the provisions of Section 4 either pre or post 01.7.2000 are not defined in terms of eligibility of approximately reductions which would mean that in the case in hand, appellant is eligible to claim the deductions of the amount paid as discount as selling agent prior to 01.07.2000 and post 01.07.2000. Looking at the entire transactions of the appellant post 01.07.2000, we find that Section 4 of the Central Excise Act, 1944 seeks to levy duty on the amounts which are the transaction value. In the case in hand there is no dispute as to the fact that the appellant raises invoice on the sales agent indicating trade discount 10% to 20% and d....