TMI Blog2005 (4) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... place of delivery and place of manufacture of particular goods. They delivered goods from their different factories to their buyers situated throughout, by handing over to the goods to the nearest transporter. The cost of transporting the goods from factories to the nearest transporter was incurred by them and it formed part of the ex-works price. The aforesaid marketing pattern was continued by the appellants right from the year 1978 and throughout the period in dispute in the above appeals (period covered is June, 1997 to December, 1999). The appellants filed a Writ Petition No. 352/1983, 1992 (57) E.L.T. 396 (Bom.) before Hon'ble Bombay High Court challenging, inter alia, the levy and collection of duty on what was then known as post man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Court observed that the Counsel for Union of India fairly conceded that the judgment of the Apex Court in Government of India v. MRF Ltd. reported in [1995 (77) E.L.T. 433] squarely covered the case and that the findings recorded by the Bombay High Court while allowing the deductions under the heads bonus to dealers, commission to agents, freight and transportation charges and bank charges, are unassailable. Based on the above decision of the Supreme Court, the appellants started claiming the four admissible deductions from 1997 onwards. Show cause notice dated 19-11-1998 was issued to the Chhindwara unit seeking to deny all the four deductions and proposing recovery of differential duty of Rs. 3,62,56,142/- and proposing imposition of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Deemed Credit 1. CEX/R-II/SCN/PME/99/29 dated 3-6-1999 Nov. 98 -Feb. 99 32,98,149 62,57,676 2. CEX/R-II/SCN/PME/99/61 dated 10-8-1999 Mar. 99 -June '99 20,06,372 11,73,048 3. CEX/R-II/SCN/PME/99/141 dated 9-12-1999 July 99 -Nov. 99 40,69,138 2,86,734 4. CEX/RII/SCN/PME/99/16 dated 17-5-2000 Dec. 99 3,08,583 6,320 TOTAL 96,82,242 77,23,778 The notices also proposed imposition of penalty under Rule 173Q of the Central Excise Rules. These notices were adjudicated by Commissioner's Order No. 27/2001, dated 28-9-2001, confirming demand of duty as raised in the notices and imposing penalties of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the Writ Petition filed by Raymond Ltd. was 1981-1982, whereas the period in dispute in the present appeals is subsequent to 1997. Further, the sales agreement between Raymonds and its agent was not before the Hon'ble Mumbai High Court, as it does not form part of the documents on which Raymonds relied in the Writ Petition, as seen from the additional paper book containing copy of the Writ Petition along with annexure. The list of documents relied upon before High Court's are various Chartered Accountants certificates and letters exchanged between Raymonds Ltd. and Central Excise Authorities. 6. During the hearing before us, in reply to a specific query from the bench, the ld. Counsel for the appellants argued that for the period in d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.85 crores (representing 2.72% of net sales) was paid. We note that even in the Hon'ble Bombay High Court decision cited supra bonus was allowed on actual basis and the issue was remanded for determination of amount of bonus on actual basis. Bank charges and interest : The undisputed position emerging from the sales policy of the appellant is that no bank charges are payable by them and the same are on buyer's account. Further, prices are Free On Road (FOR) Ex Works. The appellants have conceded that for some period, they have wrongly claimed full amount of bank charges as deductions towards bank charges paid to the bank over and above the amount recovered from the buyers. We agree with the ld. DR that when sales policy states that suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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