TMI Blog2009 (5) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... cturers of dental equipment falling under chapter 9018 49 00/9402 10 00/9022 13 00 of Central Excise Tariff Act, 1985. During the departmental audit conducted on 9-8-2005, based on the records for the period April, 2004 to July, 2005 an objection was raised alleging that the discount allowed to goods sold through dealers includes the charges incurred for rendering service to such goods sold through dealer and part of such discount allowed to dealers is to be treated as part of assessable value and duty at the appropriate rate to be paid. It was also alleged that valuation should be carried out under Rule 6 of Valuation Rules, 2000 and not under Section 4(1)(a) of Central Excise Act, 1944. A show cause notice was issued demanding duty, inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rendered after sales service during the warranty period on their own. It is also his submission that the facts in this case are similar to that of the case in the Maruti Udyog Ltd. v. CCE [2004 (170) E.L.T. 245 (Tri)]. He would submit that both the lower authorities have erred in applying the provisions of Central Excise Valuation Rules, 2000 in a case where it was not warranted. He would submit that the issue in this case is also covered by the decision of the Hon ble Supreme Court in the case of M/s. Philips India Ltd. [1997 (91) E.L.T. 540 (S.C.)], though the said judgment was given in the context of old Section 4. 5. Ld. Jt. CDR on the other hand would defend the impugned orders on the ground that the appellant herein was giving disco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to show that the entire transaction is not covered under provisions of Section 4(1)(a) of the Central Excise Act, 1944. We may reproduce the said provisions of Section 4(1)(a) and 4(1)(b) for better appreciation. 4.(1) where under this Act the duty of excise is chargeable on any excisable goods with reference to their value, then on each removal of the goods such value shall - (a) in a case where the goods are sold by the assessee, for delivery at the time and place of the removal, the assessee and the buyer of the goods are not related and the price is the sole consideration for the sale, be the transaction value. (b) in any other case, including the case where the goods are not sold, be the value determined in such manner ..... X X X X Extracts X X X X X X X X Extracts X X X X
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