9911796707
TMI Blog2001 (1) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... Salt Act, 1944. Civil Appeal No. 2579 of 2000 : 2.In this appeal, the respondent, M/s. Vikram Detergent Ltd. is engaged in the packing of detergent powder received by it from M/s. Hindustan Lever Ltd. (HLL). After the goods are packed, they are cleared from the factory by HLL and sold through it's clearing and forwarding agents from their depots all over the country to wholesale buyers who are known as Redistribution Stockists. The Department calculated the excise duty payable on the detergent powder on the price charged by HLL from the redistribution stockists. Civil Appeal No. 3160 of 2000 : 3.M/s. IPF Vikram India Ltd., the respondent in this appeal produces detergent under agreement with M/s. Indexport Ltd. (IEL) and Stepan Chemical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as are the relevant facts. We have heard one set of arguments and our decision disposes of both matters. 5.According to the appellant, the discount on the damaged goods could not be known at the time of their removal from the factory and as such was not admissible as a deduction on the wholesale price. It was contended that what the respondents claimed as discount was in fact a refund to the buyers for receiving goods damaged in transit. As far as Bank collection charges are concerned, according to the appellant, these were neither cash discounts nor any other discount within the meaning of the word in Section 4(4)(d)(ii) of the Act. 6.It was submitted by the respondents that deduction on account of damages represented discounts allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the place of removal, the cost of transportation from the place of removal to the place of delivery shall be excluded from such price. (3) xxxxxxxxxxxx (4) For the purpose of this section, - xxxxxxxxxxxx (d) "Value", in relation to any excisable goods, - (ii) does not include the amount of the duty of excise, sales tax and other taxes, if any, payable on such goods and, subject to such rules as may be made, the trade discount (such discount not being refundable on any account whatsoever), allowed in accordance with the normal practice of the wholesale trade at the time of removal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation; it is a clear case of making up to the customer by means of a credit note the monies that it has lost on account of breakages or losses in transit." 9.The respondents sought to distinguish the decision in Surya Roshni case (supra) by contending that the claim for deduction on account of damaged goods was a claim not under sub-section (2) of Section 4 as being part of the cost of the transportation but under sub-section 4(d)(ii) of Section 4 as a trade discount. We are unable to accept the submission. 10.The object of "damage discount" is to compensate the buyer for the damaged goods and logically, compensation for damaged goods could not feature as a relevant consideration for determining the price of the goods as manufactured at t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delivery of the goods and the realisation of the monies is deductible from the assessable value of the goods at the time of removal from the respondents' factories. For the same reason, bank charges included in the price on account of clearance of outstation cheques cannot form part of the price of the goods at the time of removal and are as such excludible from the price while calculating the assessable value of the goods. The Tribunal had, as such, correctly allowed this deduction. 12.In the circumstances, the appeals are allowed to the extent of disallowing the respondents' claim for deduction on account of damage discount and dismissed in so far as the respondents' claims for deduction of bank charges are concerned. There will be no or ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
