Custom, Excise & Service Tax Tribunal
Cce, Indore, M.P vs M/S.Grasim Industries Ltd on 7 May, 2013
IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL
NEW DELHI.
Excise Appeal No3532 of 2005-Excise
CCE, Indore, M.P. Appellant
Versus
M/s.Grasim Industries Ltd. Respondent
Appearance: Rep. by Shri R.K. Mathur, DR for the appellant.
Rep. by Shri R. K. Hasija, Advocate for the respondent.
CORAM : Honble Shri D.N. Panda, Judicial Member Honble Shri Rakesh Kumar, Technical Member Final Order No. 56513/2013 Dated : 07/05/2013 Per. D.N. Panda The show cause notice made allegation that there were certain gift items which were supplied to wholesalers, showrooms and retailers for sale promotion of their products and recovered part of the amount from the wholesalers and retailers towards the advertisement expenses. With this allegation, adjudication was made to raise the demand. Commissioners finding in this regard is that there is no nexus between the consideration recovered from gift and sale of the goods cleared.
2. Revenue being aggrieved by the above conclusion of the Commissioner came in appeal on the ground that decision of the appellate authority has prejudiced Revenue.
3. Heard both sides and perused the grievance in para-3 of the adjudication order.
4. There is no justification shown by the learned adjudicating authority to appreciate to that there was depression to assessable value made through the process of supply of gift items and recovery of the part of the cost of the gift. While in one hand learned adjudicating authority says that the goods were gift items, on the other hand he says that there was a recovery of the part of the price thereof. It is inconceivable how a gift is a realizable sale transferring of the property in the goods in question. Adjudication has not brought out the nexus how recovery from the gift items was an additional consideration flown to the appellant and such value of consideration was deflated amount of sale price of excisable goods cleared. In the absence of nexus, it is not possible to uphold the adjudication order. Therefore, appellate order sustains and Revenue appeal is dismissed.
( D.N. Panda ) Judicial Member ( Rakesh Kumar ) Technical Member Ckp.
1 Excise Appeal No3532 of 2005-Excise