TMI Blog2016 (7) TMI 770X X X X Extracts X X X X X X X X Extracts X X X X ..... view of the legal issue having been settled in favour of the assessee. If the cash discounts offered by the appellant, are required to be considered and the assessable value has to be recalculated based upon such offers of discounts, in terms of the Supreme Court decision, the present demand of duty on the ground that such cash discounts do not stand availed by the appellants’ customers in most of the cases, falls to the ground. - Demand set aside. - Excise Appeal No. 56268-56269,56447-56448 of 2013 - FINAL ORDER NO. 52188-52191/2016 - Dated:- 14-6-2016 - Ms Archana Wadhwa, Member (Judicial) and Mr. V Padmanabhan, Member (Technical) Shri B L Narasimhan, Advocate for the Appellants Shri R K MIshra, AR for the Responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce with the assessable value of ER-1 return. Further, it was also observed that none of the value of cash discount shown for the year 2005-06 to 2009-10 was tallying with the value shown in the trial balance. 3. As per facts on records, in respect unit No.2 are that the company was allowing rebate to dealers as per price on project supplies made to different buyers. These dealers were found to be availing these rebates by way of issuing debit notes to the assessee and were also charging service tax on these debit notes. The assessee was availing credit of service tax on the strength of these debit notes, which were not valid documents prescribed under Rule 9 of Cenvat Credit Rules. It was also alleged that service tax paid on sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stomers, even though offered by the assessee, the actual payment made by the customers would be liable to taxes. He said the order of the Tribunal stands reversed by the Hon ble Supreme Court. He has taken us to the said decision of the Hon ble Apex Court. 5. On going through the said decision, we find that the issue before the Hon ble Supreme Court was that as to whether cash discounts offered by the manufacturer at the time of clearance of the goods from the factory gate would get deducted from the total value of the goods so as to arrive at the correct assessable value, in terms of new amended provisions of Section 4. Hon ble Supreme Court, after taking note of entire developments in the field of law, observed as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or prior to the clearance of the goods, being contained in the agreement of sale between the assessee and its buyers, and must therefore be deducted from the sale price in order to arrive at the value of excisable goods at the time of removal 26 .In view of what has been said above, it is clear that cash discount has therefore to be taken into account in arriving at price even under Section 4 as amended in 2000. 6. As is seen from the above, it stands held by Hon ble Supreme Court that even after the amendments in section 4, the cash discounts have to be taken into account for arriving at the price on which duty is required to be paid. Though the appellants have taken a categorical stand before the authorities below t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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