|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1984 (8) TMI 80 - SUPREME COURTWhether on a true consideration of the Notification No. 25/70, dated 1-3-1970 issued by the Government of India, the appellant is entitled to claim exemption from the imposition of excise duty on fertilisers which, according to the appellant, are mixed fertilizers manufactured by the appellant? Whether the amount of commission paid by the appellant to its selling agents should be deducted as trade allowance in computing the value of the goods for assessment of excise duty? Held that:- A wrong decision in favour of any particular party does not entitle any other party to claim the benefit on the basis of the wrong decision. We are, therefore, clearly of the opinion that the fertiliser manufactured by the appellant in respect of which claim for exemption under the Notification is made is not a mixed fertiliser within the meaning and scope of the Notification and we have no hesitation in rejecting the case of the appellant, expressing our agreement with the reasons stated in the judgment of the High Court. Commission paid to an agent for services rendered by him in the matter of sale of the product of the appellant on behalf of the appellant on the basis of the agreement the appellant had with its selling agents cannot be considered to be in the nature of such trade discount as may qualify for deduction in the computation of the assessable value of the goods for the purpose of levy of excise duty. The commission paid to the selling agents is not a trade discount given either to the wholesale buyer or to the retail buyer, it is not given to the consumer or the trader. The commission paid on the basis of the agreement to the selling agent by way of remuneration for services rendered by the agent cannot by any process of reasoning be said to be trade discount payable or paid at the time of removal of the goods from the factory or any other premises of manufacture or production for delivery at the place of manufacture or production. The amount of commission paid to the selling agents, therefore, is not trade discount within the meaning of the Explanation to section 4 of the Act and does not qualify for any deduction. In our view, the High Court was clearly justified in rejecting this claim of the appellant. Against assessee.
|
