2017 (8) TMI 511

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....f Central Excise Tariff Act, 1985. They market these footwear through independent wholesale buyers at the factory gate and also through their own retail outlets, by retail sale. The stand of the department is that certain deductions like trade discount, extra trade discount and additional trade discount claimed from the wholesale price is not permissible in respect of retail sale clearances. Show-cause notices were issued for the period from 3/95 to 8/97 which was adjudicated by the Deputy Commissioner of Central Excise, E-II Division, Bangalore vide Order-in-Original No.31/2001 dated 28.11.2001. The lower authority confirmed differential duty demand of Rs. 27,56,944/- under Rule 9(2) of Central Excise Rules, 1944 read with Section 11D(3) o....

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....he contention of the assessee that the wholesale price was determined after allowing the additional trade discount and extra trade discount, which is not the correct position. 5. On the other hand, the learned counsel for the assessee defended the impugned order. He further submitted that the issue in the present case is no more res integra and has been settled by the Hon'ble Supreme Court in the case of Metal Box Ltd. Vs. Collector of Central Excise, Madras: 1995 (75) ELT 449 (SC) wherein in para 13, the Hon'ble Supreme Court has observed as under: "13. Learned counsel for the Department vehemently contended that such a discount to be admissible has firstly to be uniformly made available to all customers like concessional sales o....

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....tral Excise Act does not in terms enact the trade discount in order to qualify for deduction thereunder should be on a uniform basis to all wholesale purchasers at the factory gate. Any such view would require the addition of word uniform before the trade discount: occurring in Section 4 which is not evidently permissible. Nor it would be advisable to read the requirement of uniformity even by implication. Even if trade discount is not uniformly given or is given at different rates to different purchasers, it cannot by itself disqualify if from being excluded for arriving at the assessable value so long as the lack of uniformity is not founded on any extra-commercial considerations. To ignore the deduction of trade discount would amount to ....