TMI Blog2019 (11) TMI 377X X X X Extracts X X X X X X X X Extracts X X X X ..... same and furnished all relevant documents. In addition to the verification by original authority, scrutiny by the Assistant Director of Cost also has been done. The Commissioner (Appeals) after going through such documents has reached a conclusion that the discounts are eligible and there is sufficient evidence to establish that the discounts have been passed on to the buyer. The only dispute thereafter which remains is with regard to the quantification of the discounts - For this, the Commissioner (Appeals) has relied upon the Cost Accountant certificate to determine the quantity of the discounts on average/equalisation basis. The Commissioner (Appeals) has correctly held that the discounts were very much known to the parties before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sation of the accounts of the principal manufacturer the assessments were also finalised by the original authority. While finalising the account, the original authority disallowed the deductions claimed by way of discounts given to buyers alleging that the respondents have not furnished necessary documents to show that the discounts have been passed on to the buyers. It was alleged also certain invoices did not show the name of the job workers, and that the discounts granted on apportionment basis and based on turnover of job workers is not admissible as only actuals in relation to the goods removed can be allowed. Aggrieved by such disallowance of deduction on account of discounts and demand of differential duty, respondents filed appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... absence of additional proof, the discounts ought not to be allowed by the Commissioner. He prayed to set aside the impugned order. 3. The Learned Counsel Shri Bharat Rai Chandan appeared and argued on behalf of respondents. He referred to the cross objections filed by the respondent and stressed that the respondent had produced all necessary documents before the authorities below. The main contention of the department is that the respondent did not produce necessary documents to establish that the discounts have been passed on to the buyers. This is without any basis. It is pointed out by him that provisional assessment and finalisation are undertaken year after year. The previous years assessments were finalised after allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 730 (Tribunal)] was also relied to argue that principle of equalisation can be applied to determine the quantum of discounts. He argued that the Commissioner (Appeals) has correctly scrutinised the documents with the help of experts like the Assistant Director of cost and allowed the discounts. He prayed that the impugned order may be upheld. 6. Heard both sides. 7. The major ground put forward by the department in the appeal memo is that the respondents have not furnished necessary evidence to establish that the discounts have been passed on to the buyers and also that there is a condition attached to the discounts that the same would be eligible only on meeting the targets of sale, and thereby as to the qua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e parties before the supply. Further, discounts are passed on to the customers and hence are eligible for deduction. We find that the department has also not objected to the same and their main grounds of appeal was on the points of non-submission of the records and by the appellant. Having gone through the voluminous records submitted by the appellants and having come to the conclusion that discounts are admissible, then quantification of the same can be on the basis of equalisation formula as laid down by the case cited above. Therefore, we do not find any infirmity in the order of the Commissioner (Appeals) and the same does not require any interference. 10. The appeals are dismissed. Cross objections disposed accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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