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2016 (10) TMI 650 - AT - Central ExciseDeduction of Trade discount from Assessable value - Eligibility of Trade discount - three type of discounts : (a) declared discounts to the dealers on goods sold to such dealers; (b) declared discounts to the dealers by way of credit note on sales arranged by such dealers; and (c) commission paid to consignment agents on sales made by them to independent buyers - Held that: - these are transactions of sale by the appellants to the appointed dealers and discount on such sale, which was pre-declared in terms of the agreement, is clearly eligible for deduction. It is a fact that the said dealers also acted as agents in respect of arranged sales from the appellants to independent buyers for which the dealers were paid percentage as incentive. This apparently is an ‘agency commission' not to be considered as trade discount on sale of excisable goods. It is clear that such ‘commission' cannot be considered for discount in terms of legal provisions of Section 4 of the Central Excise Act - commission (claimed as ‘trade discount') paid to such agents/dealers for arranged sales to third parties will not be eligible for deduction. Time limitation - Appellants did not respond for certain queries and certain declarations now produced by the appellants did not bear the stamp of the office - the present notices were issued on scrutiny of records maintained by the appellants which included the declarations and returns filed by the appellants with the Department from time to time - Appeal is disposed of.
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