TMI Blog2007 (3) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... onfirmed by disallowing abatement claimed by the appellants herein who are processors of goods falling under Chapter 62 and manufacturers of goods falling under Chapters 51, 55, 62 63 of the Schedule to the CETA, 1985, on account of - (1) Bonus to dealers, (2) Commission to agents, (3) Freight and transportation charges, and (4) Bank charges, and penalties of amounts equal to duty have been imposed thereon. Details of the demands and penalties are as under :- Appeal No. Period Bonus to dealers (Rs.) Commission to agents (Rs.) Freight transportation charges (Rs.) Bank charges (Rs.) Total duty amount (Rs.) Penalty imposed (Rs.) A B C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o selling agents is rejected. As regards freight and insurance charges, although learned Counsel at tempts to persuade us to hold that this is a permissible deduction, we decline to depart from the view already taken for the same reason, namely that the prices are on ex-works price, and therefore, reject the claim for abatement on this count also. 4. As regards deduction claimed on account of bank charges, the contention that the facts in the present case are distinguishable from those in the Tribunal's earlier order dated 8-4-2005 disallowing such deduction, requires to be accepted for the reason that the sales policy by the appellants relating to the years 1998 and 1999 provides that "A sum of Rs. 1.25 per Rs. 100/- or fraction there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of bank charges incurred by them in excess of the amount chargeable/charged to the customers, is required to be reconsidered by the adjudicating- authority to whom we remand this case for fresh decision on this aspect. 5. As regards penalty imposed upon the appellants under the provisions of Rule 173Q, we note that the appellants had indicated their intention to avail deduction on account of permitted element of expenditure as per the decision of the Hon'ble High Court in Writ Petition No. 359 of 1983 and the decision dated 9-1-1997 of the Apex Court, passed in appeal against the High Court's order, in their letter dated 9-6-1997. By another letter dated 12-6-1997, they claimed deduction towards freight, transportation, bonus to dea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, which is not so in the present case. The provisions of clause (d) of Rule 173Q are also not attracted in the absence of any intention to evade payment of duty and there cannot be any intention to evade payment of duty as the appellants have duly intimated the department about the deduction that they proposed to claim, which in turn is based upon the decision of the Bombay High Court approved by the Supreme Court in their own case. We, therefore, set aside the penalties imposed upon the appellants. 6. In the result, the appeals are partly allowed by holding as under (i) Deduction on account of bonus to dealers is admissible subject to verification. (ii) Deduction on account of commission to agents is not admissible. (iii) Deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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