TMI Blog2000 (1) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of Rs. 1000/- on the appellants. 2. The facts giving rise to these appeals, may briefly be stated as under :- 3. The appellants are engaged in the manufacture of Ayurvedic medicine "Baljeavan Ghutti" classifiable under subheading 3003.30 of the Central Excise Tariff. During the course of checking of RT 12 returns filed by them for the months of June 1995 and October 1995 to December 1995, it revealed that they did not include the value of the gift items in the assessable value of the product for payment of the excise duty. They were accordingly issued two show cause notices one dated 26-4-1996 for demand of duty of Rs. 6103.80 and another dated 21-12-1995 for demand of Rs. 1089.47 in terms of Section 11A of the Act read with Rule 9(2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Section 4 of the Act and as such they had rightly so excluded and paid the duty on the invoice value of the product. 9. The controversy in this appeal thus centres round the question as to whether the value of the gift given in kind or in cash can be treated as a trade discount and is deductible for determining the assessable value of the product manufactured by the appellants. 10. The learned counsel has placed mainly reliance on the law laid down in Kothari Detergents (P) Ltd. v. C.C.E., Kanpur, 1998 (104) E.L.T. 513 (T) and contended that the free gifts given by the appellants in kind or in cash have to be treated as trade discount and value thereof is not includible in the assessable value of the product. But in our view, the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduct. Rather, their stand is that they are giving the gift of the other articles not manufactured by them and sometimes they even give gift in cash, to their dealers while selling their product "Baljeevan Ghutti". Therefore, obviously, the gifts in the form of articles or in cash are being given by them as an incentive for their sales promotion to their dealers and that being so, the same cannot be regarded as a trade discount so as to allow the appellants not to include price thereof, in determining the assessable value of the product. The law laid down in Kothari Detergents (P) Ltd., supra relied upon by the counsel for the appellants, is not attracted to the facts of the present case. In that case the company was manufacturer of the de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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