2002 (2) TMI 796 - AT - Central Excise

Summary

Issues:
1. Disallowance of discount offered by the manufacturer to the respondent.
2. Determination of assessable value based on the price at which goods were sold.

Issue 1: Disallowance of discount offered by the manufacturer to the respondent:
The respondent, a pharmaceutical products manufacturer, supplied drugs to Glaxo India Ltd. for sale at its depot. The respondent included the price, excise duty, and discount in the price list filed for assessment. The department issued notices disallowing the discount, claiming it was not offered by the manufacturer to the respondent. The Assistant Commissioner upheld the disallowance, reworked the value by excluding the discount, and imposed a penalty. The Commissioner (Appeals) accepted the respondent's contention that the price charged from Glaxo India Ltd. should be considered the normal price, and the subsequent discount was not admissible to their dealers. The appeal was allowed, directing the deduction of the claimed discount.

Issue 2: Determination of assessable value based on the price at which goods were sold:
The appeal emphasized that the assessable value should be determined based on the price at which the respondent sold the goods to Glaxo India Ltd., not the price at which Glaxo India Ltd. sold the goods to its dealers. The respondent agreed to produce invoices and documents to establish the selling price to Glaxo India Ltd. The duty payable would be recalculated accordingly. If there was an excess payment, the respondent would be entitled to a refund under Section 11B of the Act, subject to certain conditions. The Counsel for the respondent clarified that any duty incidence had been passed on to buyers, thus any refund would be credited to the Consumer Welfare Fund as per the Act's provisions.

In conclusion, the appeal was allowed on the condition that the discount be deducted, and the assessable value be determined based on the price at which the respondent sold the goods to Glaxo India Ltd. Any duty refund would be subject to the provisions of Section 11B, with excess amounts credited to the Consumer Welfare Fund.