TMI Blog2020 (4) TMI 469X X X X Extracts X X X X X X X X Extracts X X X X ..... s, though the availability of the discounts was known at the time of clearance of the goods, these were quantified later but are to be deducted from transaction value. Thus, at the time of clearance of goods, since there is no quantification of demand, provisional assessment needs to be resorted to. This is also in line with the Board s Circular dated 30.06.2000 - the rejection of the request for provisional assessment was incorrect and unsustainable in law and the learned Commissioner (Appeals) has rightly set aside the order passed by the learned Assistant Commissioner, rejecting the request for provisional assessment. Appeal dismissed - decided against Revenue. - Excise Appeal No. 52691 of 2018, 52692 of 2018 [DB] - Final Order Nos. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant for the purpose are that the respondents herein are engaged in manufacture of tyres, Tubes and Flaps and are selling their products through their Depot/consignment agent situated all over India. Various discounts were allowed by the respondents to its dealers on the sale of the goods from the Depot. The availability of these discounts was though known to the dealers before clearance of the goods, however, on account of very nature of these discounts, the same could not be quantified at the time of sale to the dealers from the depots. Accordingly, a request for provisional assessment of goods was made by the respondent-assessee, which was allowed vide order dated 20th July, 2015. Accordingly, the respondent assessee cleared the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same to be well within the law as well as within the Department s clarification. It is thereafter that a review order No.25/26 dated 16.08.2018 were passed by Commissioner, Central Goods and Service Tax, Jodhpur directing to file an appeal before this Tribunal. The Department, accordingly, filed an appeal before CESTAT, Delhi challenging the assessee-respondent s entitlement to deduct the amount of discounts from the transaction value, which could not be quantified at the time of clearances from depot. In furtherance of said order, the Department is before us. 5. We have heard Shri V.B. Jain, learned D.R. for the Department and Shri Amit Jain, ld. Counsel for the respondent assessee. 6. It is mentioned that the Commissioner (Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of Hon ble Apex Court in the case of Bombay Tyres International (Supra). Subsequently also the same has been followed by Hon ble Supreme Court in the case of Union of India vs. Madras Rubber Factory Ltd. reported in 1995 (77) ELT 433 (S.C.) and has been held as follows:- Hon ble Supreme Court in the case of Union of India v. Madras Rubber Factory Ltd. and others reported in 1995 (77) E.L.T. 433 (S.C.) while interpreting the provisions of Section 4 of Central Excise Act, as it stood during the period prior to 1-7-2000 and in which there was a specific provision for deduction of trade discount from the assessable value, has held that the deduction of trade discounts known and understood at the time of removal of goods is permi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot 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 cash discount for the prompt payment etc., will therefore not form part of the transaction value. What is important is that it must be established that the discount of a given transaction has actually been passed on to the buyer of the goods. The differential discounts extended as per commercial considerations on different transactions to unrelated buyers if extended cannot be objected to and different actual prices paid or payable or various transactions are to be accepted for working assessable value. Where the assessee claims ..... X X X X Extracts X X X X X X X X Extracts X X X X
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