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2009 (12) TMI 379 - AT - Central ExciseValuation- Transit Risk Insurance- Appellant engaged in manufacture of Sheet Glass falling under Chapter 70.02 of the First Schedule to CETA, 1985. Two show cause notices were issued to the appellant covering the period from July, 2006 to June, 2007, proposing to demand the duty on the amount of 7% of the price of the finished goods collected by the appellant in the name of Transit risk insurance/Transit insurance” and rejecting the claim of various discounts from the assessable value made by the appellant. Imposed duty, interest, and penalty under Section 11AC of Central Excise Act, 1944. Further, confiscation of the goods has also been ordered and a fine in lieu of confiscation of Rs. 2.5 crores has also been imposed. Held that- The only ground on the basis of which the discount has been disallowed is that the same is not shown in the invoices and is not transparent. Further, as rightly observed by the Board in circular, Central Excise duty is payable on the net transaction value. The Department has not shown that no transaction value is shown in the invoice. Therefore, discount passed on by way of issue of credit note was admissible payment - no evidence produced to show that buyers did not know about it, and department not contending that discount was not passed by way of credit note held to be admissible. - Discount allowed to be deducted from transaction value.
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