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2019 (11) TMI 377 - AT - Central ExciseDisallowance of deduction on account of discounts - non-furnishing of necessary evidence to establish that the discounts have been passed on to the buyers - deductions by way of discounts given to buyers disallowed, alleging that the respondents have not furnished necessary documents to show that the discounts have been passed on to the buyers - finalisation of accounts - demand of differential duty - HELD THAT:- The original authority has given the details of the documents submitted by the respondents. Each time when the authority has requested for further documents, respondents have responded to the same and furnished all relevant documents. In addition to the verification by original authority, scrutiny by the Assistant Director of Cost also has been done. The Commissioner (Appeals) after going through such documents has reached a conclusion that the discounts are eligible and there is sufficient evidence to establish that the discounts have been passed on to the buyer. The only dispute thereafter which remains is with regard to the quantification of the discounts - For this, the Commissioner (Appeals) has relied upon the Cost Accountant certificate to determine the quantity of the discounts on average/equalisation basis. The Commissioner (Appeals) has correctly held that the discounts were very much known to the parties before the supply. Further, discounts are passed on to the customers and hence are eligible for deduction - Having gone through the voluminous records submitted by the appellants and having come to the conclusion that discounts are admissible, then quantification of the same can be on the basis of equalisation formula - there is no infirmity in the order of the Commissioner (Appeals) - appeal dismissed - decided against Revenue.
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