TMI Blog1993 (6) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... s and Salt Act. The decision of the Supreme Court prescribes what deductions are permissible from the normal price to determine the assessable value. After the decision of the Supreme Court, the petition was placed before one of us (Pendse, J.) and by order dated December 9, 1983, the proceedings were remitted back to the Assistant Collector with a direction to reconsider the matter in the light of the decision of the Supreme Court. The petitioners were permitted to file revised price list for proper determination of excise duty liability in respect of the claim of deductions. The Company was desirous of seeking deductions in respect of (a) transportation cost, (b) trade discount (rebate on cash sales), (c) Distributor's expenses, (d) commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mrs. Mody, learned counsel appearing on behalf of the Company, submitted that the decision of the Assistant Collector in respect of transport cost for the return of empty bottles cannot be sustained in view of the decision of the Supreme Court reported in 1988 (36) E.L.T. 723 (Indian Oxygen Ltd. v. Collector of Central Excise). The learned Counsel also referred to an unreported decision dated March 18, 1993 delivered by Division Bench of this Court in Writ Petition No. 265 of 1981 (Rogers Co. Pvt. Ltd. and Another v. The Union of India Others). The Division Bench after considering the ratio laid down by the Supreme Court held that the assessee will be entitled to deduction on account of cost of transportation not only from the factory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Collector felt that the rebate is not in the nature of discount but is in the nature of incentive and granted after the invoices are raised and the removal of the goods was complete. Mrs. Mody submits and, in our judgment, with considerable merit that the Assistant Collector has failed to properly examine the claim made by the Company. The learned Counsel urged that the Company has presented a specific case before the Assistant Collector that the rebate is granted for a period of over 30 years and the percentage of trade discount is fixed and the vouchers and ledger accounts are maintained in respect of grant of rebate. Mrs. Mody submitted that it is well-settled that the question as to whether the rebate is granted and whether it forms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lding that the claim made in respect of sales promotion and the decision of the Supreme Court in Bombay Tyre International specifically provides that such expenses cannot be deducted but are to be included. Mrs. Mody submitted that the Company will be able to produce evidence to establish that 2½% of net sale value was paid towards distributors expenses for return of bottles and crates. We enquired from the learned counsel as to whether any agreement is entered into with distributors providing for this kind of payment and the reply was that there is no agreement with the distributors. In these circumstances, we are unable to accede to the submission of the learned Counsel that the finding of the Assistant Collector on this aspect suffers fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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