Quantity discounts, bonus quantities, etc. cleared without payment of duty under MRP based assessment - CBEC Clarifies
THE Latest Board Circular states,
“A larger bench of CESTAT in the case of Indica Laboratories Vs CCE, Ahmedabad - 2007-TIOL-713-CESTAT-AHM-LB has held that quantity discount, bonuses etc , are applicable for the valuation of goods under section 4 of the Central Excise Act, 1944 and not in case of goods valued under Section 4A.
The party has appealed against the said order before High Court of Gujarat. However, no stay has been granted by the High Court against the said order of the larger bench of tribunal. You may accordingly take necessary action as per the order of the larger bench of tribunal to protect the revenue interests”.
The Tribunal delivered this decision on 21.05.2007 – and the Board is now alerting the field – after three and a half years!!!
How can anybody protect the Revenue Interests now?
Once in a Blue Moon they find a favourable order from the Tribunal, which is not stayed by the High Court and they celebrate it after three years. But what happens in hundreds of cases, which are favourable to assessees, which are not stayed by High Courts, especially the refund cases? DO they ask the field formations to implement such orders?
In fact there are adjudicating officers in the field who have no shame3 to write in their adjudication orders that the matter has not reached finality as the Department has gone in appeal and so the benefit of the Tribunal order will not be allowed.
CBEC Circular No. 938/28/09-CX; Dated November 29 2010