TMI Blog2019 (2) TMI 1239X X X X Extracts X X X X X X X X Extracts X X X X ..... ot operated, in such a case - Amount of discount initially offered by the appellant, which was subsequently paid by the buyer shall become part and partial of transaction value falling under the definition of transaction value given in Section 4 of Central Excise Act 1994. Cash discount which is not at or prior to clearance of goods being contained in agreement of sale between assessee and buyers must, therefore, be deducted from sale price in order to know the value of excisable goods at time. Hence, cash discount was deductible. Appeal allowed - decided in favor of appellant. - Appeal No. E/1310/2010-DB - A/10347/2019 - Dated:- 21-2-2019 - Mr. Ramesh Nair, Member (Judicial) And Mr. Raju, Member (Technical) For the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demand and penalty under section 11AC. However, an option of 25% penalty was given. Being aggrieved by the OIA, appellant filed the present appeal. 2. Shri H. Vyapari, Ld. CA appearing on behalf of the appellant submits that the discount policy is declared to the customers well in advance on sale of the goods. Discount is shown in the sale invoice. At times against the said invoice the customer did not avail the cash discount as the payment against the invoice was not made within the stipulated time period in order to avail discount. In such a case, the payment of discount is recovered from the customers. He submits that as per section 4, duty is payable on the price which is actually paid or payable for the goods when sold. In present c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment is not made within the stipulated time i.e. 4 days or 14 days, as the case may be, the scheme of discount is not operated, in such a case. Amount of discount initially offered by the appellant, which was subsequently paid by the buyer shall become part and partial of transaction value falling under the definition of transaction value given in Section 4 of Central Excise Act 1994. It is reproduced below: Section 4(3)(d) transaction value means the price actually paid or payable for the goods, when sold, and includes in addition to the amount charged as price, any amount that the 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 the sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) dealing with the same issue taken a view that transaction value has to be written alongwith expression for delivery at the time or place of deliveries. Therefore, value of excisable goods even on the basis of transaction value is only to be taken i.e. at the time of clearance of goods from assesee s factory or depo. An expression actually paid or payable for the goods when sold means whatever is agreed to as price for the goods on the basis of value whether such price, has been paid in parts or has not been paid at all. Hence, cash discount which is not at or prior to clearance of goods being contained in agreement of sale between assessee and buyers must, therefore, be deducted from sale price in order to know the value of excisable g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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