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M/s. Sudhir Papers Ltd. Versus Commissioner of Central Excise, Bangalore

2017 (1) TMI 655 - CESTAT BANGALORE

Refund claim - unjust enrichment - discount - The customer while making the payment deducts the applicable cash discount and so far as quantity discount is concerned, the appellant raises credit note based on the total quantity lifted, if the target quantity is achieved - rejected on the ground that the duty has been passed on to the buyer as the credit note has been issued subsequent to the raising of invoice - Held that: - this issue is no more res integra in view of the recent decision of the .....

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- Dated:- 6-1-2017 - Shri S. S. Garg, Judicial Member And Shri V. Padmanabhan, Technical Member Mr. N. Anand, Advocate For the Appellant Shri N. Jagadish, AR For the Respondent ORDER Per S. S. Garg The present appeal is directed against the impugned order dated 23.12.2003 passed by the Commissioner (Appeals) whereby he rejected the appeal of the appellant and upheld the Order-in-Original. 2. Briefly the facts of the case are that the appellant is a manufacturer of coated paper. The appellant had .....

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ount and so far as quantity discount is concerned, the appellant raises credit note based on the total quantity lifted, if the target quantity is achieved. The appellant filed two refund claims along with relevant documents within the time limit laid down in Section 11B of the Act. Thereafter a show-cause notice was issued proposing to reject the claim. Appellant filed reply to the show-cause notice along with the copies of sample invoices and credit notes as well as trade circular copies. The l .....

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submitted that the impugned order is not sustainable in law as the same has been passed without appreciating the legal provisions as well as the judgments rendered by the higher judicial fora. He further submitted that both the authorities erred in law on facts in holding that charging of duty in the invoice amounts to passing on the burden of duty to customer even though credit notes were issued subsequently including the duty amount. He further submitted that the allowability of cash discount .....

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which are reproduced herein below: The issue involved in this appeal is that the appellants allow quantity discount, cash discount and dealers discount at the time of setting excisable goods. The exact quantum of these discounts will be known only after lapse of time and are not known at the time of dispatch. Appellants filed refund claims seeking excess duty paid on these discounts, which were allowed after clearance of the goods. The lower authority has rejected the refund claim by relying on .....

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C) * S. Kumar s Limited 2003 (153) ELT 217 (Tri.-LB) * Grasim Industries 2003 (153) ELT 694 (Tri.-LB) In view of the above latest decisions, covering the same issue that is whether refund of duty is admissible where adjustments are made subsequent to clearance of goods, the order of the lower authority is sustainable. 6.1 Further, the learned counsel for the appellant fairly conceded that this issue is no more res integra in view of the recent decision of the Hon ble Supreme Court of India in th .....

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would be unjust enrichment if the said refund is allowed. It was held by the Special Bench of CEGAT, New Delhi by its judgment dated 17.03.1994 in Collector of Central Excise, Madras Vs. Addison & Co. Ltd. that the turnover discount is not an admissible abatement on the ground that the quantum of discount was not known prior to the removable of the goods. In an appeal filed by the respondent-Assessee, this Court by its judgment dated 11.03.1997 in Addison & Co. Ltd. Vs. Collector of Cent .....

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mbay Tyre International (supra) that trade discounts shall not be disallowed only because they are not payable at the time of each invoice or deducted from the invoice price. It is the submission of the Assessee that the turnover discount is known to the dealer even at the time of clearance which has also been upheld by this Court. It is clear from the above that the Assessee is entitled for filing a claim for refund on the basis of credit notes raised by him towards turnover discount. 15 - 20 . .....

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