2017 (10) TMI 1221

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....e are that, during the period under consideration, the assessee-Appellants were engaged in the manufacture of 'Pipes' of the irrigation systems. They have claimed the cash discounts on the goods sold to the dealer from depot/branches directly from factory at the time of clearance of the said goods @ 1.5%. The assessee-Appellants had claimed the discounts as deduction from all the clearances while determining the assessable value under Section 4 of the Central Excise Act, 1944, but the same was denied by the Department. Being aggrieved, the assessee-Appellants have filed the present appeals. 3. With this background, we have heard Shri Mehul Jivani, learned counsel for the assessee-Appellants and Shri S.K. Bansal, learned DR for the Departme....

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....th 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 "deemed value" which was the case under the Old Section 4 of the Act. Under Old Section 4 the value shall be deemed to be the normal price, that is to say, the price at which such goods are ordinarily sold by the assessee to a buyer in the course of wholesale trade or delivery at the time and place of removal. In view of this clear language of the Section itself, the Bombay High Court in the case of Jenson & Nicholson (India) Ltd. v. Union of India, 1984 (17) E.L.T. 4 (Bom.) has filed that the wholesale cash price on which the excisable duty is assessable will naturally be the price minus t....

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.... 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 be asked for determination of the assessable value under new Section 4 is what is the "transaction value" of the goods that is "the price actually paid or payable for the goods when sold." Contrary to these provisions, under the old Section 4 the value was a deemed one, that is to say, the price at which goods a ordinarily sold in the course of wholesale trade. Now under New Section 4, one has not to look as to what is the price at which goods are ordinarily sold in the course of wholesale trade. The price actually paid or payable is to be taken up as the assessable value. In the present....