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2017 (1) TMI 1072 - AT - Central ExciseNatural justice - Valuation - discounts claimed by the Appellant had not been entirely passed on to the customers - deductions claimed wrongly - whether the Appellants are eligible to cash discount, and deductions on account of special packing charges and freight charges from the sale price, during the relevant period, in the determination of assessable value and discharge of duty? Held that: - appellants have placed certain letters issued by the customers acknowledging the receipt of their business policy circulars where the percentage and nature of cash discount had been disclosed. Also, they have procured letters/ communication from various customers accepting knowledge about the percentage and nature of cash discount through business policy circular; these evidences need to be scrutinized by the learned Adjudicating Authority. Hence, for verification of these evidences, the issue needs to be remanded to the Adjudicating Authority. With regard to the deduction of expenditure on account of special packing charges, we could not find the said explanation as sufficient to arrive at the conclusion that the goods were cleared in special packing condition at the instance of the buyers so as to allow the expenditure as deduction from the price. In the result, the learned Commissioner's finding on special secondary packing is upheld. On the issue of deduction of freight charges, We find from the statements furnished for each of the Financial year in calculating the discounts availed and consequently the differential duty paid by the Appellant, the element of freight was shown on actual basis; also in their reply to the Show Cause Notice the same figures of actual freight charges incurred had been mentioned. However, its admissibility has to be considered on the basis of evidences even though in principle it is admissible in view of the judgment of Hon ble Supreme Court in the case of CCE&C, Nagpur Vs Ispat Ltd [2015 (10) TMI 613 - SUPREME COURT]. Accordingly, this issue also requires to be remanded to the Adjudicating Authority for reconsideration. Appeal disposed off - matter on remand.
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