TaxTMI 
TaxTMI 
2005 (3) TMI 114
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....ral Excises and Salt Act, 1944 (in short the 'Act') for the compressors manufactured by it. It also filed price list in Part II for the same kind of compressors showing a lesser price of Rs. 150/- of assessable value per compressor than in the Part I price list for sales to alleged bulk buyers. Notice was issued proposing disallowance of the lower price on the ground that the bulk buyers did not constitute a different class of buyers and cannot be distinguished from other wholesale buyers; there cannot be more than one price for the same class of buyers. In the notice it was alleged that the claim for lower price on the ground that the bulk buyers purchased a substantial quantity had not been justified. The Assistant Collector declined to a....
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.... the most relevant factor that the Revenue's case was not that any extra commercial consideration existed so far as the present appellant is concerned. That being so, the presumption is that the price fixed was rational and the Collector (Appeals) had rightly decided in favour of the appellant. The beneficiaries were clearly identifiable. The names of the persons belonging to different regions were noted. Taking into account the previous periods' turnover, the price concession was given. The authorities were clearly in error by observing that classifications cannot be made on regional basis. The comparison of the sales figures has been made by the authorities and CEGAT by taking all the regions together and not inter-zones. Merely because n....
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....o an incorrect conclusion that the details were not filed. 7.In response, Mr. K. Swami, learned Counsel for the respondent submitted that mere absence of any extra commercial considerations does not per se entitle an assessee to the benefit in terms of Section 4(1)(a) (proviso) unless an intelligible rationale for choosing differently between different groups of buyers is established. The assessee was granted an opportunity to justify the ground for granting discount to the named persons. Except stating that the management had taken a decision in that regard, no other material was placed for consideration. It was, therefore, contended that the Revenue Authorities and the CEGAT were justified in rejecting claim made by the assessee-appellan....
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....tablish that discount claimed was in accordance with the normal practice of wholesale trade in the concerned goods sold to different classes of buyers, and it shall be subject to the existence of other circumstances specified in Clause (a). Such circumstances are : (a) Charging of normal price at which such goods are ordinarily sold; (b) sale must be to a buyer in the course of wholesale trade; (c) the sale must be in the wholesale trade for delivery at the place and time of removal; (d) the buyer is not a related person; and (e) the price is the sole consideration for the sale. In order to show that the goods are sold to different class of buyers in accordance with normal practice it has to be established that same was the normal practice ....
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....ional basis. 13.The expression "rational" means as per The Law Lexicon, Second Edition 1997, "endowed with reasons". 14.The expression "Irrational" means as per The Law Lexicon, Second Edition 1997, illogical not endowed with reason, insane. 15.There may be cases, where in a particular region there is a scope for increasing the turnover by giving incentive to some. But there must be some intelligible criteria for treating the benefited persons differently from others. It is true that comparison can or may be made intra-region and not by taking all regions together. But even then the appellant has not shown the justification for wide variation within the same region. For example, in region where transactions are substantial i.e. Delhi the....
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....rvations have been examined in the light of the facts and circumstances of the case. One of the basis factual disputes was long length of sliver tops. Having regard to the long length, we find that the Tribunal was not in error. Whether a particular item and the particular goods in this case are wool wastes, should be so considered or not is primarily and essentially a question of fact. The decision of such a question of fact must be arrived at without ignoring material and relevant facts and bearing in mind the correct legal principles. Judged by these yardsticks the finding of the Tribunal in this case is unassailable. We are, however, of the view that if a fact finding authority comes to a conclusion within the above parameters hon....