2017 (8) TMI 996

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he case are that the appellant is a job worker and converted scrap into steel flats bars supplied by M/s. Tata Motors Limited. As per agreement, the transportation charges of finished goods from job worker's premises to M/s.Tata were to be borne by the appellant. The appellant had claimed deductions on account of transportation charges incurred for outward transportation of the goods from their factory to the premises of M/s. Tata Motors Ltd. The appellant has also claimed deduction of hundi discount from the assessable value which has been worked out on the basis of landed cost of raw material supplied by M/s. Tata Motors Limited and the job charges. The Revenue is of the view that the appellant is paying outward transportation charges....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ods have been cleared from their factory. Therefore, in view of the decision of the Hon ble Supreme Court in the case of Ujagar Prints, we hold that outward freight includible in the assessable value in the facts and circumstances of the case. Therefore, the demand on that account is set aside. Issue No.2 5. We find that in an identical set of facts in the case of Indian Pistons Ltd. Vs. CCE, Chennai - 2007 (218) ELT 451 (Chennai), the issue came up before this Tribunal and this Tribunal observed as under: "2. After examining the records and hearing both sides, we have found that, under the BMS arrangement, the assessees supplied their products to M/s. TELCO Ltd. at discounted price to be paid by the latter immediately upon receipt....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....value. 3. Learned SDR submitted that the so-called BMS arrangement was nothing but bill discounting i.e., deduction made by the bank for premature encashment of assessee's bills. It was submitted that such amounts were not deductible from the assessable value as held by the Tribunal in the case of Zenith Ltd. v. Commissioner of Central Excise, Aurangabad Order Nos.397 & 398/93A dated 20-8-1993. It was also pointed out that the above decision of the Tribunal had been upheld by the Supreme Court vide 1997 (93) E.L.T. A71 (S.C.). We wanted to see the full text of the Tribunal's Order Nos.397 & 398/93A ibid. and accordingly directed the SDR to produce the same within 7 days [from the date of hearing]. The DR has not produced any copy....