TMI Blog2017 (8) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... en to the buyers and debit notes raised by the appellant on the buyers - demand of duty on discounts - Held that: - a verification report was sought by the adjudicating authority from the Range Superintendent, who after due verification of the records, has filed report that wherever the appellant has given discount but actually not passed on to the customers, they have paid duty - no demand is sustainable against the appellant. Appeal allowed - decided in favor of appellant. - Appeal No.E/1805/2007, Appeal No.E/1638-1639/2007 - Final Order No. 61465-61467/2017 - Dated:- 1-8-2017 - Mr. Ashok Jindal, Member (Judicial) And Mr.Devender Singh, Member (Technical) For the Appellant: Shri Rajesh Chhibber, Advocate For the Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on account of clearance of exempted goods or processed goods or discount is not given to the buyers and not paid duty. During the course, of investigation, on these discrepancies, various show cause notices were issued to the appellant to demand of duty on account of notional interest on the advance received from the buyers, the cash discount shown in the invoices actually is not given to the buyers, the debit notes issued and not paid duty for the amount recovered from the buyer. Aggrieved from the said orders, the appellant is before us. 3. Learned Counsel for the appellant submits that where they have given discount shown in the invoices but not actually given to the customers, they have paid duty thereon. It is also contended that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty on notional interest is not sustainable. In these terms, it is prayed that the impugned orders are to be set aside. 4. On the other hand, learned AR produced the verification report of the Superintendent and latest report filed by the department shows that initial verification done by the Superintendent from records and is correct. On the issue of notional interest, he fairly submits that the appellant has paid interest on higher rate than the bank lending rate. 5. Heard both sides and considered the submission. 6. On careful consideration of the submission made and in the facts and circumstances of the case, the following issues have emerged: (a) Whether in the facts and circumstances of the case, notional interest is requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Moreover, on the debit notes, the Range Superintendent has verified and given the report how the duty is payable on account of debit notes which stand paid by the appellant. The report has been accepted by the learned AR during the course of arguments, in that circumstance, on this account, no demand is sustainable against the appellant. 9. In view of the above analysis, we set aside the demand raised against the appellant in the impugned orders. The report of the Superintendent is correct report and as per the said report whatever duty is payable by the appellant, the same stands confirmed and the same has been paid. No duty is payable on this acccount of notional interest. The penalty is also not imposable on the appellant. 10. In v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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