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2009 (8) TMI 453 - AT - Central ExciseValuation- discount- The appellants are manufacturers of fans which are cleared to their related persons, (‘Intermediaries’ for short). The fans are thereafter sold by these parties to Ravi Marketing Ltd. (‘RML’ for short) which is also a related person. The fans are sold at all stages. There is no dispute that the price of RML is to be adopted for the purposes of determining the value under Section 4 of Central Excise Act, 1944 (‘Act’ for short). The appellants had claimed several deductions towards various elements in the price list in Part-IV filed by RML. After two rounds of litigation, in the impugned order, the Commissioner (Appeals) has disallowed the deductions claimed by the appellants on account of incentive scheme discount, average cash/prompt payment discount, advance payment discount and freight. The impugned order has been passed after matter had been remanded by the Tribunal to the original adjudicating authority on the plea made by the appellant that even though they have been asked to get chartered accountant’s certificate before they could get the same and produce before the Deputy Commissioner/Assistant Commissioner, he had adjudicated the case and passed the order. The Tribunal had directed the Assistant Commissioner to examine the issue afresh after taking into consideration the certificate of cost accountant and to pass an order accordingly on providing an opportunity to the appellants. Held that- that the Commissioner (Appeals) was wrong in taking lowest figures of freight and we allow the deduction as per second set of figures by the Assistant Director (Cost) which include expenses incurred upto the stage of sale of RML i.e. including freight expenses incurred by the intermediaries. Summing up all the deductions claimed by the appellants in dispute are allowed. The figures of deduction other than cleared freight shall be based on the basis chartered accountant’s report submitted by the appellants. It is also made clear that the deductions would be allowed mainly on actual figures submitted by the chartered accountant’s report. The department would be free to verify the correctness of the chartered accountant’s report if they so desire. As regards the freight, the deduction shall be allowed on the basis of report of the Assistant Director (Cost) and the figures given by the Assistant Director (Cost) the freight incurred by the intermediaries shall be taken into account. The matter is remanded to the original adjudicating authority for the purpose of working out the actual amount of duty payable.
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