TaxTMI 
TaxTMI 
2024 (10) TMI 814
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....se are that the appellant is engaged in manufacture and distribution of compressed natural gas (CNG) falling under Tariff Item No.27112100 of First Schedule to Central Excise Tariff Act, 1985. Appellant is registered with Central Excise and paying central excise duty. During the course of EA 2000 audit conducted by officers of Revenue during the months of December 2012 to January 2013, it was noticed by the officers of Revenue that the appellant had entered into an agreement dated 20.01.2009 with Navi Mumbai Municipal Transport for supply and sale of CNG through compressors and dispensers supplied by the appellant and installed in the depot premises of Navi Mumbai Municipal Transport and that in terms of the said agreement, a trade discount....
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....tire infrastructure and equipment for dispensation of CNG were set up by the appellant at their own cost. They also enclosed a copy of the said agreement dated 11.03.2009 with the said reply and contended that both the transactions are independent of each other and discount offered by the appellant was trade discount and in lieu of use of land of Navi Mumbai Municipal Transport, appellant was paying monthly lease rent and, therefore, demand is not sustainable. The said show cause notice was adjudicated through order-in-original dated 22.07.2014. Learned original authority has not taken into consideration the said sublease agreement dated 11.03.2009 and taken into consideration only the agreement dated 20.01.2009 and confirmed the demand and....
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....n that additional consideration in the form of space and civil structure has been provided by Navi Mumbai Municipal Transport in its premises for establishing and running Mahanagar Gas Ltd. outlets is factually incorrect as the appellant is paying monthly lease rent to Navi Mumbai Municipal Transport for using the said premises for establishing and running outlets. Learned counsel has further submitted that, therefore, there is no case for allegation of additional consideration and the price charged by Navi Mumbai Municipal Transport was the sole consideration for sale of CNG and, therefore, the trade discount given by the appellant cannot be considered as additional consideration and the same does not merit to be added to the transaction v....
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.... the appellant has established their dispensing unit in the land belonging to the said purchaser. We note that before the original authority, the appellant had submitted that for the purpose of setting up of outlets, the appellant had entered into a sublease agreement with the purchaser on 11.03.2009 and as per clause 2.1 of the said sublease agreement, the appellant was required to pay monthly lease rent of Rs.59,584/- to the purchaser of the goods dispensed by the appellant. Therefore, in our opinion, both the transactions are independent of each other. For clarity we wish to reiterate our finding that for use of land, appellant is paying lease rent and, therefore, use of land by the appellant is not influencing the terms of sale between ....
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....f additional consideration from OMCs to the assessee. The contention of the Department that the price charged on sale of CNG through the assessee's own outlets or through the outlets of their agents, should be taken into consideration for valuation of goods supplied to OMCs, was not acceptable in view of the provisions of Section 4(1)(a) of the Central Excise Act, 1944 which permits different transaction value for assessment purposes so long as those are based on purely commercial consideration and there is no mutuality of interest between the buyer and seller." We note from the above stated ruling by Hon'ble Supreme Court that when there is no evidence of flow of additional consideration, the assessable value arrived at after allowing tr....