TMI Blog2014 (2) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... s for the purpose of payment of Central Excise duty at the time of removal. Naturally such consideration, like an escalation of price clause, may not be known at the time of removal. Price payable at a later date could not be said to be the price payable at the time of removal and therefore could not be considered as the transaction value at the time and place of removal. The Bench did not find any significant difference between the deemed price under the old Section 4 and the actual price under the amended Section. In vie of facts and doubts raised by the decision of Lucas TVS Limited vs. CCE, Chennai [2008 (10) TMI 76 - CESTAT CHENNAI] Registry is directed to place the papers before the President for constituting a three Member Benc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich were not actually availed by the customers/buyers after the clearance. 3. Shri S.J. Vyas (Advocate) appearing on behalf of the appellant argued that their case is squarely covered by the judgment of Mumbai Larger Bench in the case of CCE Mumbai vs. Arvind Mills Limited [2006 (204) ELT 570 (Tri. LB)]. He relied upon the following case laws to the effect that as per judicial discipline, this bench cannot distinguish or differentiate the law laid down by the Larger Bench on an issue:- (a) Suganthi Suresh Kumar vs. Jagdeeshan [(2002) 2 SCC 420] (b) Suga Ram vs. State of Rajasthan [2006 (8) SCC 641] It was also his case that discount not availed represent only the interest liability required to be paid by the customer/buyer on the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Para 6(i) of the Larger Bench decision in the case of Lucas TVS Limited vs. CCE, Chennai [2009 (233) ELT 192 (Tri. LB)] a doubt has been raised by the Larger Bench regarding the correctness of the view taken by another Larger Bench in Arvind Mills case (supra). It was thus prayed that the issue may be referred to Larger Bench for the correct legal interpretation of Transaction Value under new Section 4 of the Central Excise Act, 1944. 5. Heard both sides and perused the case records. The issue involved in the present proceedings is whether Central Excise duty is required to be paid, for those cash discounts availed at the time of removal/ sales by the appellant for which prompt payments are not made by the customers/ buyers within the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the goods, when sold, and includes in addition to the amount charged as price, any amount that the buyer is liable to pay to, or on behalf of, the assessee, by reason of, or in connection with the sale, whether payable at the time of the sale or at any other time, including, but not limited to, any amount charged for, or to make provision for, advertising or publicity, marketing and selling organisation expenses, storage or outward handling, servicing warranty, commission or any other matter; but does not include the amount of duty of excise as well as tax and other taxes, if any, actually paid or actually payable of such goods. 5.2. Section 14(1) of the Customs Act, 1962 is reproduced below:- SECTION 14. Valuation of goods - (1) F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of Transaction Value of new Section 4 of the Central Excise Act, 1944 even a consideration at a time other than sale will also be required to be added to the assessable value of the goods for the purpose of payment of Central Excise duty at the time of removal. Naturally such consideration, like an escalation of price clause, may not be known at the time of removal. In the case of cash discounts also a view can be taken that the additional amount received by the appellant after removal with respect to goods will be a consideration for the purpose of Transaction Value of the new Section 4 of the Central Excise Act, 1944, the same doubt has been raised by the Larger Bench in the case of Lucas TVS Limited vs. CCE Chennai [2009 (233) ELT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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