COMMISSIONER OF CENTRAL EXCISE Vs. HCL OFFICE AUTOMATION

JUDGEMENT

(1.) THIS is an appeal at the instance of the Revenue challenging the order passed by Commissioner (Appeals) dated 5 -5 -2002.

(2.) THE issue raised herein relates to the claim of the respondent/assessee for deduction of retailing expenses. Pursuant to an order passed by this Tribunal dated 18 -3 -99, this issue was examined by the adjudicating authority and by order dated 31 -3 -01, it was held that the respondents are entitled to retailing expenses only to the extent of 8.5%. The above order was challenged before the Commissioner (Appeals) by the assessee.

(3.) THE assessee had contended that it is entitled to claim retailing expenses at 20% of the retail price. In support of the above contention the assessee placed reliance on the decision of the Hon'ble Supreme Court in the case of Modi Xerox relating to same type of goods namely photocopy machines where 28% had been allowed as retailing expenses. Reliance was also placed on circular issued by C.B.E.C. dated 8 -8 -75 directing that in determining the amount of deduction or for specifying the percentage, regard shall be had to the nature of excisable goods, the trade practice in that commodity and other relevant factors. Certificate issued by the Chartered Accountant that the retailing expenses would be 20% of the retail price was also relied upon. On the other hand it was contended by the Department that only 50% of the marketing expenses can be allowed as the retailing expenses. The Commissioner (Appeals) accepted the contention raised by the assessee and took the view that 20% of the retailing expenses is justified. It is against the above order, the Revenue has come up in appeal.