TMI Blog2017 (5) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 of 2012 - A/52681/2017-EX[DB] - Dated:- 29-3-2017 - Mr. (Dr.) Satish Chandra, President And Mr. Ashok K. Arya, Member (Technical) (Rep. by Sh. Ashish Vaish, Adv.) for the Appellants (Rep by Sh. R.K. Manjhi, DR) for the Respondent ORDER Per (Dr.) Satish Chandra The present appeal is filed against the Order-in-Appeal No.598/2011 dated 26.12.2011. 2. The brief facts of the case are that the Appellant is engaged in the manufacture of writing and printing papers failing under Chapter 48 of the Schedule to the Central Excise Tariff Act, 1985. 3. In the instant case, the main issue is: whether the cash discount realized back by the Appellant through debit notes is chargeable to central excise duty. It is observ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia Vs. C.C.E., Delhi III, 2015 (323) ELT 227 (SC) , wherein the Supreme Court observed as under: 6. When it came to cash discount, the Tribunal [2005 (182) E.L.T. 385 (Tri.-Del.)] upheld the finding of the Commissioner on the following basis :- 10. Regarding cash discount, it is not in dispute that the duty has been demanded in respect of cash discount which was not actually passed on to the customers. The learned Advocate has relied upon the decision in Pace Marketing Specialties Ltd., supra, wherein it has been held by the Tribunal that cash discount is a discount allowed for prompt payment for the goods and when this discount is reduced from the invoice price, transaction value at the time of delivery of goods is obtained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld by the assessee, for delivery at the time and place of the removal, the assessee and the buyers of the goods are not related and the price is the sole consideration for the sale, be the transaction value. Thus in the present matter, the value for the purpose of Section 4 shall be the transaction value which has been defined in clause (d) of sub-section(3) of Section 4 of the Act as under :- transaction value means the price actually paid or payable for the goods, when sold, and includes in addition to amount charged as priced, any amount that they 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 sale or at any other time, including, but not lim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manded to the jurisdictional Adjudicating Authority for re-adjudication in terms of our direction. We leave the issue regarding imposition of penalty open to be decided by the Adjudicating Authority. 7. Shri Lakshmikumaran, learned counsel for the appellant, has argued that Section 4 of the Central Excise and Salt Act, 1944 as amended in 2000, has made no change in the situation qua cash discount as it obtained under the old Section 4. According to him, what has to be seen in order to arrive at the correct value of excisable goods under Section 4 is such value at the time of removal, and this being so under both the old Section and the new Section, cash discount has to be allowed as has been held in Union of India v. Bombay Tyre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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