TMI Blog2019 (8) TMI 869X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 goods at time. Hence, cash discount was deductible. - appeal allowed - decided in favor of appellant. - Excise Appeal No. 10915 of 2016 - A/11542/2019 - Dated:- 14-8-2019 - MR. RAMESH NAIR, MEMBER (J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s made by both the sides and perused the records. On the identical issue this bench has passed an order in the case M/s. J K Paper Ltd (Supra) following the Hon ble Supreme Court judgment in the case of M/s. Purolators India Ltd (Supra) wherein the following order was passed. The brief facts of the case are that the appellant is a manufacturer of writing and printing paper and registered with Central Excise. During an audit by departmental officers, it was discovered that appellant has two channels of sale: A. Sale at factory gate B. Sale from depot. Appellant has a cash discount policy where cash discount is given at the rate of two percent, if the bill amount is paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 case, the price which was payable at the time of sale of the goods was discounted price. Therefore, only that discounted price shall be treated as transaction value in terms of section 4 (3)(d) of Central Excise Act, 1944. He further submits that on the very same issue bearing the same facts has been decided by the Hon ble Supreme Court and the larger bench of Tribunal and various benches of High Court are cited below: 1. Purolator India Ltd. 2015 (60) Taxmann.com 471(SC) 2. Arv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 sale or at any other time, including, but not limited to, any amount charged for, or to make provision for, advertising or publicity, marketing and selling organization expenses, storage, outward handling, servicing, warranty, commission or any other matter; but does not include the amount of duty of excise, sales tax and other taxes, if any, actually paid or actu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctory 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 goods at time. Hence, cash discount was deductible. Since, Hon ble Apex Court analyzed in detail, the same issue involved common facts and law as per the principals on judicial discipline, we are bound by such judgments. Accordingly, following the ratio of the Hon ble Supreme Court Judgment in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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