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2019 (1) TMI 908 - AT - Central ExciseValuation - quantum of discount to be reduced - It was contended by the Department that the appellants are remunerating the re-sellers with 1% trade discount included in the 30% trade discount. The effective trade discount is only 29% and 1% being the remuneration for the services rendered by the re-sellers appears to be in the form of a commission and not a trade discount. - Section 14 of the Customs Act read with Rule 3 of the Customs Valuation Rules, 1988 - extended period of limitation. Held that:- These discounts are not in the nature of discounts as understood in the common parlance. They are directly or indirectly an expenditure to the appellants. The remuneration due to the wholesalers is given in the form of discounts. Therefore, these add to the cost of the products that the appellants are selling. More so, in respect of the EHTP unit the clearances made to the wholesalers in the domestic market are in the nature of imports by the wholesalers - Therefore, all the amounts paid or payable by the wholesalers form part of the” transaction value” for the purpose of the wholesalers in terms of Section 14 of the Customs Act, 1962. Whether the 3 SCNs under consideration are barred by limitation? - Held that:- The appellants have been regularly filing their monthly ER-1 Returns indicating the quantities of computers manufactured and cleared every month, the details of invoices raised during the said month and the total value of clearances affected during the month in question. Department has already issued a SCN dated 26.03.2001 for the period April 1999 to Sept. 2000 to the appellants for the very same issue - when the Department is quite aware of the activities of the appellants, no suppression, nonetheless of a material fact with intent to evade payment of duty can be alleged - the SCNs are barred by limitation. Matter remanded back to the Original Authority for confirmation of duty for the normal period.
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