TMI Blog2018 (6) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... s no infirmity in the observation - appeal dismissed - Decided against Revenue. - APPEAL NO.E/1507/2011 - A/62372/2018-EX[DB] - Dated:- 22-3-2018 - Mr. Ashok Jindal, Member (Judicial) And Mr. Anil G Shakkarwar, Member (Technical) Shri.G.M. Sharma, present for the Appellant(s) Shri.Sudhir Malhotra, Advocate present for the Respondent(s) Per : Ashok Jindal 1. Revenue is in appeal against the impugned order. 2. The brief facts of the case are that the respondents are engaged in the manufacture of P P Medicines. During the course of audit of record and verification of invoices issued by the respondents, it was noticed by the audit that the respondents have supplied/distributed specific quantities of various medicines pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and no MRP has been affixed on the said goods. These facts are not in dispute as the free supplies were not having any MRP and given as discount/free supply to their customers. Therefore, it is their trade strategy to supply goods to free of cost to the buyers. In that circumstances, the Ld. Commissioner (Appeals) has correctly observed as under: 7. The appellants have contested the demand on merits pleading that they were supplying the products manufactured by them alongwith a small quantity as quantity discount and these free quantities were not paid for by the buyer and that there is no question of any demand on the same. They have contended that it has no where been proved that the party to whom the goods were sold are related or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... antity discount - Dealer receives from the assessee a stated extra quantity if he buys a certain other quantity, which is known and agreed at the time, the transaction. Is entered into - It is trade discount admissible for deduction Section 4 of the Central Excise Act, 1944. [para 2] 8. Further, Tribunal in the case of Surya Foods Agro Ltd. Vs.CCE, Noida 2003 (156) E.L.T. 488, also referred by the appellants, following the decision in the case of Kothari Detergents (P) Ltd. V. Commissioner 1998 (104) ELT 513, held that quantity discounts given, irrespective of manner of administering, are eligible for deduction while fixing the assessable value of excisable goods which are subject to duty on ad valorem basis. Since the goods in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arged from such buyers. Thus,, in view of these undisputed facts, it is to be held that discounts in this case were extended on purely commercial considerations to the unrelated buyers and price was the sole consideration for sale in these transactions. Accordingly, the above observations of the adjudicating authority are not sustainable and hence denial of deduction on discounts claimed by the appellants on above ground does not sustain. 5. As the Ld. Commissioner (Appeals) has examined the issue in detail and allowed the trade discount after following the various judicial pronouncements. Therefore, we do not find any infirmity in the impugned order and do not find any merit in the appeal filed by the Revenue, the same is dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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