2018 (2) TMI 679

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....nt for Appellant Shri Deepak S.Chavan, Supdt. (A.R) for respondent Per :   Ramesh Nair These two appeals has been filed against Order-in-Appeal dt. 05.03.2008 by the Commissioner (Appeals). The fact of the case is that the Appellant M/s NRB Bearings Ltd. are engaged in manufacturing of Bearings and are supplying the same to M/s Tata Motors Ltd. The second Appellant Shri S.K.Shah....

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....onsultant appearing for the Appellant submits that the discount of 1.9% given to M/s Tata Motors cannot be held as expenditure incurred by M/s Tata Motors on behalf of Appellant. The discount was provided to Tata Motors as they were not in a position to make the early payment and the Appellant was incurring interest on borrowing of funds from the bank,  hence it was decided to provide the&nbs....

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....(SC). He further submits that it is not disputed that the discount was passed on to the buyer. The transaction is at arms length. That it is baseless to say that M/s Tata Motors incurred the same as cost for buying the goods from the Appellant. 3. On the other hand, Shri Deepak S. Chavan, learned Superintendent (AR) appearing on behalf of the Revenue reiterates the findings of the impugned orde....

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....e Appellant had consented to receive payment early from Tata  Motors by agreeing to get the Hundi discounted and in terms of such understanding provided discount, it cannot be said that M/s Tata Motors has incurred any expenditure on behalf of Appellant. In such circumstances no demand can be made against the  Appellant. Our views are also based upon the Apex Court and Tribunals judgmen....