TaxTMI 
TaxTMI 
TaxTMI 
2017 (8) TMI 773
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....dated 13-11-2009 and SK/118/Th-II/2016, dated 11-3-2016 passed by Commissioner 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 Headings 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 ....
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....ent as well as procure orders and pass it on to the appellant for executing the same 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 10% to 20% 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 mad....
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....ible in the assessable value and the Court has also approved the decision of Philips India Ltd. - 1997 (91) E.L.T. 540 (S.C.) 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 includible in the assessable value. He would submit that the Hon'ble Supreme Court in the case of Purolator India Ltd. - 2015 (323) E.L.T. 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 Co. Ltd. (supra), the appeals may be ....
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....r the proposition that service charge paid to the selling agent for the services rendered and the goods are supplied directly are includible in 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) E.L.T. 528 (Cal.), Deekeens Polyesters P. Ltd. - 2009 (234) E.L.T. 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 disc....
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.... the appellant for the procurement of the final product while in the 2nd set of transaction, sales agent purchases the products from appellant herein 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 s....
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.... law that any amounts paid for after sale services cannot be included in the assessable value either pre or post 1-7-2000 as per the provisions of Section 4 of Central Excise 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 1-7-2000 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 1-7-2000 and post 1-7-2000. Looking at the entire transactions of the appellant post 1-7-2000, we find that Section 4 of the Central Excise Act, 1944 seeks to levy duty on the amounts which are the t....