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2024 (3) TMI 341 - CESTAT MUMBAIValuation - Exclusion of trade discount that was contracted for supply to stations of Thane Municipal Transport (TMT) from assessable value - to be included as additional consideration or not - HELD 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 failed to determine the value thereof by reference to Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 which is essential for validity in law. Moreover, the issue was considered by the Tribunal in their own case [2016 (9) TMI 782 - CESTAT MUMBAI] on sale effected to ‘oil marketing companies (OMC)’ and it was held that appellants’ case is squarely covered under new Section 4(1)(a) of CEA which essentially permit different transaction values, unlike normal sales price existed prior to 1-7-2000, which has also been explained by C.B.E. & C., vide its Circular No. 354/81/2000-TRU, dated 30-6-2000 in Para 5. The reliance placed by Learned Authorized Representative on the decision in re re Bharat Petroleum Corporation Ltd [2009 (6) TMI 166 - CESTAT, MUMBAI] does not advance the case of Revenue inasmuch as the two transactions therein were held to be akin to barter. Here, it is alleged that money value of the facilities, treated as equivalent to ‘trade discount’, be added back to the transaction value. These fall under different provisions of the Rules supra and the lower authorities have not amplified the lack, and remedy, which was sought to be invoked. The impugned order lacks validity and must be set aside - Appeal allowed.
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