BIRLA VXL LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) This is an appeal at the instance of the assessee against the order passed by the Commissioner of Central Excise (Appeals), Chandigarh dated 22 -3 -2002.

(2.) The issue raised in this appeal is whether the appellant is entitled to avail abatement to arrive at the assessable value on account of (1) Turnover Discount, (2) interest reim bursed in respect of unutilized FOI period (cash discount), and (3) Commis sion paid to sales representatives. After aggregating the discounts actually granted and averaged against the total clearances the assessee claimed 10% abatement as PRE. The claim of the assessee under the above three heads was rejected by the assessing authority and affirmed by the Commissioner (Appeals).

(3.) The appellant is manufacturing and selling woollen as well as man -made fabrics. The fabrics manufactured by the appellant were cleared for home consumption as well as for export. The goods cleared for home consumption are sold to wholesale dealers/buyers. The orders are placed directly on the appellant. In respect of those orders which are accepted by the appellant, the sales representative will be responsible for payments and acts as a del -credere agent. He is entitled to commission in respect of sales made by the appellant on orders received through their efforts.