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TMI Blog2003 (3) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... essee, is deductible in assessing the excisable value of the goods sold to the sub-stockists? 3.The assessees manufacture parts and accessories of motor vehicles tractors, trailors and other stationary/diesel engines. The goods in question are tractors. During the relevant period, out of the tractors manufactured by the assessees. sixty per cent were sold to their stockists at 27.5 per cent discount and forty per cent were sold to their sub-stockists at twenty-five per cent discount. The differential discount of 2.5 per cent, was passed on to the stockists by the assessees. It is the deducibility of that amount, in arriving at the excisable value of the tractors sold to the sub-stockists, that is in question in these appeals. The Assistant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee to a buyer in the course of wholesale trade for delivery at the time and place of removal, where the buyer is not a related person and the price is the sole consideration for that sale : xxxxxxxxxxxx 'value', in relation to any excisable goods, - where the goods are delivered at the time of removal in a packed condition, includes the cost of such packing except the cost of the packing which is of a durable nature and is returnable by the buyer to the assessee. Explanation. - In this sub-clause, 'packing' means the wrapper, container, bobbin, pirn, spool, reel or wrap beam or any other thing in which or on which the excisable goods are wrapped, contained or wound; does not include the amount of the duty of excise, sales tax and oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own in the price list minus twenty-five per cent discount. 6.However, Mr. A.R. Madhav Rao, learned Counsel appearing for the assessees, invited our attention to the definition of the term 'value' in clause (d) of sub-section (4), referred to above and argued that as the assessees were passing on the differential discount to the area stockists the same ought to be deducted as part of trade discount under sub-clause (ii) of clause (d). 7.That sub-clause provides that value, in relation to any excisable goods, does not include the amount of 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 allowed in accordance with the normal practice of the wholesale trade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ractors to the sub-stockists is separate and independent of sale to the stockists. 9.From the contentions raised before the Tribunal it appears to have been urged for the assessees that the differential between the higher discount to their stockists and the lower discount to the sub-stockists was passed on to the stockists as commission. If that be the plea, even otherwise, the differential discount cannot be accepted for the purpose of sub-clause (ii) as a permissible deduction. [See : Seshasayee Paper and Boards Limited v. Collector of Central Excise [1990 (47) E.L.T. 202]. 10.For the aforementioned reason, the differential discount has rightly been disallowed as deduction by the Tribunal in computing the excisable value of the tractors ..... X X X X Extracts X X X X X X X X Extracts X X X X
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