Commissioner of Central Excise Vs. Nicco Batteries Ltd. - Court Judgment

SooperKanoon Citationsooperkanoon.com/15882
CourtCustoms Excise and Service Tax Appellate Tribunal CESTAT Delhi
Decided OnMay-19-1999
Reported in(1999)(112)ELT1022TriDel
AppellantCommissioner of Central Excise
RespondentNicco Batteries Ltd.
Excerpt:
1. this is second appeal of the commissioner. the impugned order had allowed different discount for sales in u.p. and other parts of the country, the reason being that sales in u.p. were exempted from sales-tax. the appeal of the revenue seems to contend that u.p. price should be the basis for assessment of all the clearances, it being ex-factory price.2. learned counsel shri swaminathan submits for the respondents that the regional discounts are permissible under law. the respondents were, therefore, right in paying duty at a higher price for sales in u.p.(these sales being exempted from sales tax) and at lower value in respect of sales to other regions.3. shri s.p. rao, learned dr. he reiterates the submissions in the appeal.4. we have carefully perused the record and considered the submissions of both the sides. it is settled law that regional discounts are permissible while fixing assessable value of manufactured goods. the orders of the lower authorities being in confirmity with the legal position, they cannot be faulted. the appeal, therefore, fails and is dismissed.
Judgment:
1. This is second appeal of the Commissioner. The impugned order had allowed different discount for sales in U.P. and other parts of the country, the reason being that sales in U.P. were exempted from sales-tax. The appeal of the Revenue seems to contend that U.P. price should be the basis for assessment of all the clearances, it being ex-factory price.

2. Learned Counsel Shri Swaminathan submits for the respondents that the regional discounts are permissible under law. The respondents were, therefore, right in paying duty at a higher price for sales in U.P.(these sales being exempted from sales tax) and at lower value in respect of sales to other regions.

3. Shri S.P. Rao, learned DR. He reiterates the submissions in the appeal.

4. We have carefully perused the record and considered the submissions of both the sides. It is settled law that regional discounts are permissible while fixing assessable value of manufactured goods. The orders of the lower authorities being in confirmity with the legal position, they cannot be faulted. The appeal, therefore, fails and is dismissed.