Order date – 04 January 2023

Parties: Shreno Ltd Vs C.C.E. & S.T.-Vadodara-i

Facts –

• The Appellant, Shreno Ltd paid Excise Duty on the excisable goods cleared from the factory premises to depot on stock transfer basis, on appropriate duty payment, which were eventually given away as free unit discount along with other goods sold/discount given in cash at the time its sale from the depots.
• The refund claim filed by the appellant was rejected alleging that the discounts is that the same was not claimed at the time of clearance from the factory in the invoice.

Issue –

• Whether the appellant is eligible to claim the refund of Central Excise Duty?

Order –

• The Tribunal finds that the only charge made for disallowing the discounts is that the same was not claimed at the time of clearance from the factory in the invoice. There is no dispute that the appellant have pre-declared scheme of discount and the same was passed on only sale invoice issued from the depot.
• The Tribunal held that this issue has come up earlier in the appellant’s own case in bunch of appeals in which it was held that the place of removal in case of depot is the depot from where the goods are sold and the transaction value at which the goods are sold from the depot shall be the assessable value. Therefore, the assessable value after deducting the discount is a credit transaction value and duty is payable. Thus, wherever there is difference between the value charged for which clearance of goods from the factory and the sale price after discount from the depot on such value there is excise payment of duty and the appellant is entitled refund for the same.
• Accordingly the refund is allowed.