TMI Blog2016 (9) TMI 233X X X X Extracts X X X X X X X X Extracts X X X X ..... ly well settled through various decisions of the Tribunal, Hon’ble High Courts and even the Apex Court. In the present case the place of removal is not the factory gate but the depot of the appellant. Under such circumstances the discounts allowed in the price contracted for sale from the depot would be allowable as a deduction from such price. - Decided in favour of appellant with consequential relief - Excise Appeal No. 3054 of 2012 - Final Order No. 53066 / 2016 - Dated:- 16-8-2016 - Mr. M. V. Ravindran, Member ( Judicial ) And Mr. V. Padmanabhan, Member ( Technical ) Shri B. L. Narasimhan, Advocate for the appellant Ms. Neha Garg, DR for the Respondent ORDER Per V. Padmanabhan The present appeal has been filed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has challenged the impugned order on the ground that the valuation rules do not debar the grant of cash discount, quantity discount etc even when the goods are cleared from the depot after payment of duty at the factory gate. The depot has been defined separately as a place of removal and clearances from that place of removal will also be entitled to all the discounts which are permissible when the goods are cleared from the factory gate. 3. We have heard Sh. B. L. Narasimhan, the Ld. Counsel for the appellant as well as Dr Neha Garg, the Ld. DR appearing for the revenue. 4. Sh. Narasimhan argued that the issue regarding permissibility of various types of discounts when goods are cleared from the Depot after payment of duty from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty paid at the factory gate, but stock transferred to the depot from where the same is sold to various customers, Section 4 (1)(a) of the Central excise act is not applicable because at the time of initial clearance of goods from the factory to the Depot there is no sale involved. Such cases would come under Rule 7 of the Valuation Rules. Rule 7 is reproduced below for ready reference: Where the excisable goods are not sold by the assessee at the time and place of removal but are transferred to Depot, premises of a consignment agent or any other place or premises, from where the excisable goods are to be sold after their clearance from the place of removal and where the assess and the buyer of the said goods are not related and the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous decisions of the Tribunal, Hon ble High Courts and even the Apex Court. The apex court in the Purolator case (supra) has held that duty needs to be charged at the transaction value which was the agreed contractual price. Any discounts which are part of the agreement of sale will need to be granted even if such discounts are not passed on. The various other decisions cited by the appellant in their favour have clearly held that the discounts are allowable on the normal transaction value from the place of removal. In the present case the place of removal is not the factory gate but the depot of the appellant. Under such circumstances the discounts allowed in the price contracted for sale from the depot would be allowable as a deduction fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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