AI Drafter 
TaxTMI 
TaxTMI 
2024 (3) TMI 341
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....ction 11A of Central Excise Act, 1944 for the period from July 2008 to November 2011 and for the period from December 2011 to June 2013, along with applicable interest under section 11AB of Central Excise Act, 1944, and imposing of penalty of like amount under section 11AC of Central Excise Act, 1944 as well as rule 25 of Central Excise Rules, 2002, are disposed off in this proceedings. 2. The issue stems from trade discount of Rs. 0.60 per kg of 'compressed natural gas (CNG)' that was contracted for supply to stations of Thane Municipal Transport (TMT) which was found to be excluded from assessable value was sought to be included as additional consideration. The appellant had entered into bulk contract for filling vehicles of the contra....
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.... the TMT vehicles; it is the TMT which is incurring expenditure for providing water and other facilities: TMT is incurring all this expenditure in connection with buying CNG from MGL. The cost of these facilities is nothing but additional consideration to MGL in the guise of facilities. Hence, the cost of these facilities has to be added in the price being charged by MGL. .......' 5. We find that the contractual arrangement includes facilitation of the appellant by their customer and that it is the appellant who has foregone consideration to the extent of 'trade discount' which the lower authorities have convinced themselves to be costs of such facilitation. In thus loading this cost to the assessable value, the original authority has fa....
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....0 am showing the quantity supplied, assessable value, duty paid/payable, etc. We also find that there are joint tickets prepared outlet-cum-party-wise showing the sale period starting at 0600 hrs. on preceding day and ending at 0600 hrs. on the succeeding day and also show the quantity of CNG dispensed with opening reading, closing reading, total reading and total quantity supplied. Such joint-tickets are also signed by both parties, i.e. appellants and OMCs. Thereafter, the appellants are raising tax invoices upon OMCs on monthly basis with specific business days within which payment has to be made by OMCs and for any delay in payment, interest is also payable by OMCs. The appellants have paid VAT/sales tax on their sale of CNG to OMCs, as....
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....ind that there is a distinct difference in the transactions of the appellants with PPs, wherein MGL supply CNG through the outlets owned and operated by PPs and CNG is directly supplied by PPs to the ultimate consumers/vehicles users from their outlets for and on behalf of MGL, under the invoices/bills/cash memos of MGL and the price charged in those bills/invoices/cash memos are the retail sales price or maximum recommended price determined by MGL, from time to time. In a true sense, the customers/vehicle users at the outlets of PPs are buying CNG from MGL, through the PPs. The privity of contract is between MGL and those buyers and those sales are directly recorded in the Books of Account of MGL and not in the Books of PPs, as there is no....
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....G dispensers jointly taken by MGL and OMCs; OMCs shall pay to MGL the invoice value for CNG sold as stated in the invoice within ten days from the date of invoices; it is specifically stated in the agreements between OMCs and MGL that during the term of the agreements OMCs shall not hold out to be as agents of MGL and it is clearly understood that this agreement is on principal-to-principal basis and MGL shall not be liable for any of the acts of omission/commission of OMCs. We also find from record that when CNG is supplied by MGL through PPs, there is no sale between MGL and PPs, as the sale takes place between MGL and the ultimate customers/vehicle users and the PPs act as agents of MGL; that the PPs were/are issuing cash memos/invoices/....