TMI Blog2005 (7) TMI 484X X X X Extracts X X X X X X X X Extracts X X X X ..... s well for captive consumption at its other plant situated in the same industrial estate in Ambad MlDC Nasik. 1.2The goods are sold to dealers at 35% discount and are transferred to the other unit, on discounted price, amounting to with about 40% discount. The department has questioned the valuation on such transfer invoices at 40% discounted prices and re-determined the values ignoring the large quantities involved in such interplant transfers, than in sales at 35% discount to outsiders as well as the claim that goods transferred did not contain Plastic Cover and packaging as was the case for goods sold to an independent customer. 1.3The show cause notice dated 22-11-2002 for the period November 1997 to March 1999 demanded differential ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .50 300 120 180 04 6 KVAR 690 ------- 690 600 240 360 05 9 KVAR ----- ------- ------- 900 360 540 As regards, valuation of 9 KVAR capacitor, it is noticed that the same is not sold to the customers but consumed captively at their sister unit for the manufacture of 27 36 KVAR LTMS/LTSC, hence no discount is admissible. The valuation is to be done on the basis of cost construction method without any discount, when there is no sale. thereafter as regard packaging and quantity discount it was held As regards price variation it is the contention of the assessee that, the capacitors sold to the customers were wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gards discount claiming of the discount it is seen that the discount @ 35% is given against the quantity sold to the customers where the clearances are very few (i.e. 5, 10, 20 pieces). Whereas discount at 40% is given in respect of clearance made to their own unit where clearances are in hundreds (i.e. 100, 200 500 pieces), thus this is quantity discount. In this regard, I find that, the discount claimed in respect of clearances for captive consumption is also admissible on par with the discount given to other customers. As the clearances for captive consumption are huge in number therefore this being quantity discount admissible under law. The discount in various forms like trade discount, quantity discount, cash discount, etc. are ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tionally to evade the payment of duty, and therefore the differential is correctly demandable from the assessee . 2.2Ld. DR relies upon Ashok Leyland - 2002 (146) E.L.T. 503 (S.C.) para 10 thereof to submit that comparable price to independent buyers will apply and the demands of differential duty be confirmed. We have considered this submission. However the S.C. decision cannot be applied in this case, since quality sold and quantity transferred, is vastly different; and quantity discounts have to be considered and granted. 2.3The transfer is from one Plot in the same MIDC estate to another, belonging to same appellant, for captive consumption; if that be so, the goods should be considered to be moving within the same factory separated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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