TMI Blog2001 (6) TMI 347X X X X Extracts X X X X X X X X Extracts X X X X ..... : S.S. Sekhon, Member (T)]. The appellants are manufacturers of inner tubes for tyre, flaps, and curing bags. Curing bags were charged to duty at ad valorem rates and they were paying duty at declared prices. 2 Enquiries made revealed that they had entered into 27 agreements for Commission Agency/Distributorship. The terms of the agreements provided - (i) Commission agent will be r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eductions from the normal selling price were claimed even though commission was paid. While for period 1-4-1991 to 30-8-1992 deductions were availed towards commission without mentioning the same as such on the Price List. While for the period 1-4-1992 to 30-11-1992, lower selling prices were declared in the Price Lists filled, to adjust the commission and after December, 1992, the deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... found that initially they had not claimed any deductions in the Price List for the commissions while in the subsequent claims of the same as Discounts were misstatements. Therefore, the longer period of proviso to Section 11A(1) could be invoked. He confirmed the duty under Rule 9(2) read with proviso to Section 11(A)(1) and imposed a penalty of Rs. 500/- under Rule 9(2) and Rule 173Q(1). 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] wherein it was held the Label given by the parties cannot be determinative the law laid down was that it was for the Courts to decide, whether the amount was Trade discount or not. The Bombay High Court in Raymond Woollen Mills Ltd. [1992 (57) E.L.T. 396 (Bom.)] distinguishing the ruling in Coromandel Fertilisers case [1984 (17) E.L.T. 607 (S.C.)], held that commission which was paid to the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no finding, how there is contravention of Rule 9(1) arrived at, when appellant has prepared the invoices the clearance documents and how the demand is being made under Rule 9(2). Findings on the same are required to be arrived at, before any penal liability could be considered. 5. In view of our findings, we set the appeal and remand the matter back for de novo adjudication. - - TaxTMI - TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
