TMI Blog2017 (9) TMI 1490X X X X Extracts X X X X X X X X Extracts X X X X ..... ld have actually been passed on to the buyers goods. The circular also takes into account the practice of year end discount, however, in such cases the transactions have to be assessed on a provisional basis - it emerges that the quantity discount was offered by respondents to all wholesale dealers, but the quantity and amount would vary from party to party and area to area as agreed, before lifting the material - the nature of quantity discount, albeit given post clearances, was very much known to the buyers of the respondent - the impugned orders upholding the claim for refund of quantity discount, on merits, is sustained. Unjust enrichment - Held that: - The ratio laid down by Apex Court in the case of CCE Madras vs. Addison & C. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by way of credit notes. The Dy. Commissioner of Central Excise processed the claims and sanctioned refund amounts under section 11-B of Central Excise Act, 1944, by way of cenvat credit to the respondents. On appeals, department filed appeals against these orders before the Commissioner (Appeals), who filed impugned orders upholding the orders of the original authority and rejected department appeals. Aggrieved, department has filed these appeals. 3. On 07.09.2017, when the matter came up for hearing, on behalf of department, Ld. DR, Shri Arun Kumar reiterated the grounds of appeal and in particular, made the following submissions: (i) The discount that has actually been given is a post discount after clearance of goods, on payment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 (TRU), dated 30.06.2000. The relevant portion of this circular is reproduced for ready reference: As regards discounts, the definition of transaction value does not make any direct reference. In fact, it is not needed by virtue of the fact that the duty is chargeable on the net price paid or payable. Thus if in any transaction a discount is allowed on declared price of any goods and actually passed on the buyer of goods as per common practice, the question of including the amount of discount in the transaction value does not arise. Discount of any type or description given on any normal price payable for any transaction will, therefore, not form part of the transaction value for the goods, eg.. quantity discount for goods purchased or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hand, it emerges that the quantity discount was offered by respondents to all wholesale dealers, but the quantity and amount would vary from party to party and area to area as agreed, before lifting the material. The show cause notice has, in fact taken cognizance of the letter of their Vice President (Mktg), introducing quantity discount with features threof. Thus, in all these cases, the nature of quantity discount, albeit given post clearances, was very much known to the buyers of the respondent. There is also no allegation that quantity discount has not been passed on to such buyers. This being so, the quantity discount will, then, be eligible for grant of refund. 6.4. We are therefore not able to find any infirmity in the findings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vs. Dharmsai Morarjee Chemicals Ltd reported in [2016(241)E.L.T A 154 (S.C)]. The ratio laid down by Apex Court in the Addison judgment was 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 and that when turn-over discount is known to the dealer at the time of clearance, assessee is entitled for filing a claim for refund, on the basis of credit notes raised by them towards turnover discounts. However, the Apex Court has also held that if it is not possible to identify persons who are borne out the amount of excise duty collected in excess will remain in the fund which will be utilised for benefit of consumers as provided under section 12 (D) of Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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