2017 (4) TMI 637

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on (September 2006 to January 2007 & February 2007 to September 2007), were engaged in the manufacture of writing and printing papers failing under Chapter 48 of the Schedule to the Central Excise Tariff Act, 1985. 3. In the instant case, the main issue is whether the cash discount realized back by the assessee-Appellants through debit notes is chargeable to central excise duty. It is observed that the transaction value defined in clause (d) of sub-section (3) of Section 4 of the Central Excise Act, 1944 is as under: "d) "transaction value" means the price actually paid or payable for the goods, when sold, and includes in addition to the amount charged as price, any amount that the buyer is liable to pay to, or on behalf of, the assessee,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o the customers. The learned Advocate has relied upon the decision in Pace Marketing Specialties Ltd., supra, wherein it has been held by the Tribunal that cash discount is a discount allowed for prompt payment for the goods and when this discount is reduced from the invoice price, transaction value at the time of delivery of goods is obtained, otherwise, the invoice price is a future price and as the assessable value is to be determined with regard to time of removal financing and other cost cannot form part of the assessable value. With due regard, we find ourselves unable to agree with this view. The measure for valuation under New Section 4 of the Central Excise Act (with effect from 1-7-2000) is the "transaction value" and not the "dee....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... value" means the price actually paid or payable for the goods, when sold, and includes in addition to amount charged as priced, any amount that they buyer is liable to pay to, or on behalf of, the assessee, by reason of, or in connection with the sale, whether payable at the time of sale or at any other time, including , but not limited to, any amount charged for, or to make provision for, advertising or publicity marketing and selling organization expenses, storage, outward handling, servicing ,warranty, commission or any other matter, but does not include the amount of duty of excise, sales tax and other taxes, if any actually paid or actually payable on such goods." 11. Thus the value has under gone a complete change. The question to ....