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2017 (8) TMI 773 - AT - Central ExciseValuation - discount/commission - includibility - It is the case of the Revenue that this amount deducted as trade discount is nothing but commission while it is the case of the assessee-appellant that the amounts disputed are discount - whether discount/commission given to the sales agent is to be included in the assessable value? - Held that: - One transaction of the sales is regarding direct sale to the customers which is executed and overriding commission is paid to the sales agent in the area and such commission is included in the assessable value for discharge of Central Excise duty. There is no demand of duty on these transactions. The second set of transactions is that the appellant sells their product directly to the sales agents. Appellant insists trade discount of 10%/20% on these transactions to the traders who purchases the goods from the appellant and market the same on their own in their area. This transaction is in dispute. There cannot be any dispute as to the fact that the sales agent can definitely function in dual role one as a commission agent and seller of the appellant’s product. The lower authority seems to have confused with the entire issue by mixing up both the sales transaction - even if these discounts offered by the appellant to the sales agent in a transaction on sale of principal-to-principal basis is towards rendering of certain services which at the most can be called as after sale services. In the case in hand there is no dispute as to the fact that the appellant raises invoice on the sales agent indicating trade discount 10% to 20% and discharges the duty liability. There is nothing on record to show that the sales agents in respect of 2nd set of transactions has paid any further amount in respect of these transactions to appellant. In the absence of any evidence, each and every sales invoices raised by the appellant could be a separate transaction and Central Excise duty is payable on the amounts received for such invoices. Demand set aside - appeal allowed - decided in favor of appellant.
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