TaxTMI 
TaxTMI 
2025 (12) TMI 1002
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.... the clearance of the TMT bars through an annual discount policy at the beginning of each financial year. Further, each financial year was divided into three blocks ("discount period") of four months each. The rate of discount varied from dealer-to-dealer based on their market area, past sales, etc. and were communicated to the dealers vide customized letters at the beginning of each discount period. During the relevant period also, the Appellant offered following types of discounts: i. Turnover/Quantity discount at different slab rates based on lifting of a particular quantity of goods within a particular period; ii. Cash discount for prompt payment of the invoices raised upon dealers; iii. Compensatory discount for reduction in market prices subsequent to the sale of goods. 3.3. Since the quantum of discount was contingent upon conditions such as quantity of upliftment of goods by the dealers, the quantification thereof could be done only after the clearance of the goods at the end of each discount period. The said discounts were processed on expiry of four months by the Appellant way of issuance of cum duty credit notes, thereby neutralizing the duty incidence. These....
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....ce this appeal. 5.1. The Ld. Consultant appearing on behalf of the appellant submits that this refund claims are not hit by unjust enrichment as CA Certificate and Dealer's certificate conclusively proves that duty incidence on discounts was borne by the Appellant alone and the unregistered dealers were incapable of passing it on to the ultimate consumers. 5.2. The Ld. Appellate Authority has erred in denying the refund claim of the Appellant by solely relying upon the case of Addison & Co. Ltd. (supra). On the contrary, the said decision supports the case of the Appellant in so far as it endorses the fact that credit notes are valid instruments for the purpose of passing post-clearance discounts and affirms that an assessee is entitled to seek refund of the duty burden borne by them on the basis of such credit notes. 5.3. The issue involved in the instant case is no more res integra and stands decided by this Hon'ble Tribunal including in Appellant's own case. 5.4. It is a well settled principle that discount of any type, cash, quantity or turnover, known at the time of or prior to the clearance of the goods and actually passed on is an admissible deduction even if the....
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.... Certificate issued by one of the dealer to certify that the duty incidence has not passed on the buyers is also incorporated as under: And the CA Certificate below also certify the same: 12. In that circumstances the buyers/dealers of the appellant has not borne the duty component and got the refund of duty paid by them to the appellant. Therefore, we hold that appellant has passed the bar of unjust enrichment and the finding of the Adjudicating Authority that the appellant has issued credit notes to its buyers/dealers of duty paid by dealers/buyers on account of discount also certify the same. 13. In view of that as held by this Tribunal in appellant's own case vide Final Order No. 75331/2024 dated 23rd February, 2024 as under: "6. I find that in this case, the refund claim filed by the appellant pertains to the Central Excise duty paid by them at the time of clearance of goods and also filed ER-I Returns and the component of discount was known to everybody before clearance of goods. In that circumstances, the decision of the Hon'ble Delhi High Court in the case of BT (India) Private Limited (supra) is not applicable to the facts and circumstances of the case. F....
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....by the respondent-Assessee, this Court by its judgment dated 11-3-1997 in Addison & Co. Ltd. v. Collector of Central Excise, Madras (supra) held that the turnover discount is an admissible deduction. This Court approved the normal practice under which discounts are given and held that the discount is known to the dealer at the time of purchase. The Additional Solicitor General submitted that any credit note that was raised post clearance will not be taken into account for the purpose of a refund by the Department. We do not agree with the said submission as it was held by this Court in Union of India v. Bombay Tyre International (supra) that trade discounts shall not be disallowed only because they are not payable at the time of each invoice or deducted from the invoice price. It is the submission of the Assessee that the turnover discount is known to the dealer even at the time of clearance which has also been upheld by this Court. It is clear from the above that the Assessee is entitled for filing a claim for refund on the basis of credit notes raised by him towards turnover discount" The CA certificate produced by the Appellant in the instant case goes to show that the ....
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....omers in the Dealer Network for the financial year 2013-34 which consists of the following type: 3 e Quantity Discount based on the lifting criteria/skibs applicable to the dealers; Cash Discount upon Prompt Payment of invoices as per the applicable slabs; Compensating Discount to off set the dealers hardship caused due to fall in market price subsequent to the sale of goods for a period of 10 days back from the date of such reduction in price; 1 The above discounts would be given by way of raising credit notes and the applicable stabs for the purpose of finalizing the amount of such credit notes would be notified through the corresponding schemes applicable for the relevant period. We, in anticipation of your continuous support as has been experienced by the Company year on year, look forward to pass on the maximum benefit of such discounts during the financial year 2013-14 to strengthen our mutual commercial association. For SHYAM STEEL INDUSTRIES LIMITED DIRECTOR 26.03.2013 Branches Document 2 S.T.D .- 03244 £252132 (S), 252248 (R) 71 S. S. Trading All kinds of Hardware Seller & General Order Suppliers. Prop .- Surajit Singha ....