TMI Blog1987 (2) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... l Sales Tax First three deductions referred to above are common to all the 13 appeals. The last deduction claimed on account of Central Sales Tax is common to the last mentioned batch of 11 appeals. 2. It is apparent from the impugned order passed by the Collector (Appeals), Bombay that he has merely endorsed the order passed by the lower authority, namely the Assistant Collector. Therefore, in order to examine the reasons as to why the various deductions as claimed by the appellants have been disallowed, we shall have to examine the reasons given by the Assistant Collector of Customs. 3. Before a detailed examination of the various claims made by the appellants is made it is necessary to set out in brief the sale pattern of the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6% Chartered Accountant s certificate has also been enclosed. 4. It is also the further contention of the appellant that their aforesaid deductions are based on circulars given out to all the buyers and it cannot, therefore, be stated that the nature of deduction claimed is not known at or prior to the removal of the goods. 5. With regard to the various deductions claimed by the appellants, learned representative Shri M.S. Dave for the appellants has submitted that there can be no dispute regarding permissibility of these deductions in view of the Supreme Court s pronouncement in the case of Bombay Tyre International Ltd. v. Union of India [1983 E.L.T. 1896] in so far as the deduction of average freight is concerned and a subseq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction on average freight, learned JCDR stated that this should not be allowed to the appellants, apart from the grounds taken by the lower authorities, on the ground that actual freight had been charged by the appellants from the customer and would, therefore, form part of the value of the goods. 7. We now consider each of the deductions claimed by the appellants after taking into account the pleas advanced on both sides :- (i) Average Freight - Deduction of this claim has been denied by the learned Assistant Collector on the ground that it has been claimed as average whereas it is actually charged on weight basis. There is nothing to indicate from the records that the prices have been charged on the basis of destination prices. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is average and the averaged freight is included in the wholesale cash price so that the wholesale cash price at any place or places outside the factory gate is the same as the wholesale cash price at the factory gate, the averaged freight included in such wholesale cash price must be deducted in order to arrive at the real wholesale cash price at the factory gate and no excise duty can be charged upon. The Bench observes that in view of the aforesaid observation and the clear evidence on record that the prices of the appellants goods are FOR destination, there is no doubt that expenses on transportation of the goods from the factory to the destination have got to be allowed whether they are actual or an average basis it should be ensured ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Bench has considered the pleas advanced on both sides. We observe that based on the judgement of Supreme Court in the case of Madras Rubber Factory mentioned supra, learned JCDR has conceded the admissibility of cash discount. We need not further elaborate this point and accept the claim of the appellants that cash discount is a permissible deduction from the price of the goods so long as these have been actually passed on to the customers. There is no doubt that this discount is known at or prior to the removal of the goods as is apparent from the Exhibit K to the paper book, namely circular dated 1-1-1984. There is, however, no question in accepting the claim of averaging this discount. This discount should be allowed on actual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be permissible to the appellants. Appellants further plea that such a discount was allowed to their sister concern at Bombay by Assistant Collector of Central Excise, Bombay is of no consequence in view of the applicability of Supreme Court s observation referred to above. (iv) Central Sales Tax. - Regarding deduction of Central Sales Tax there car hardly be any dispute in view of the clear provisions of Section 4(4)(d)(ii) of the Central Excises and Salt Act, 1944. This has been fairly conceded by the learned JCDR. No apparent reasons have been given by the authority below to disallow deduction of Central Sales Tax from the value of the goods. In view of the clear provisions of law, we allow the deduction on this account. 8. Appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X
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