GOODLAS NEROLAC PAINTS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) IN this Writ Petition, the petitioners Goodlas Nerolac Paints Ltd. , have challenged certain show cause notices issued to them by the Superintendent, Central Excise and also certain orders dated 19th October, 1979, 8th July, 1980, 19th July, 1980 and 15th July, 1980, passed by the Assistant Collector of Central Excise against them. They have also asked for a direction for approving the price-lists as set out in the petition and for permitting the petitioners to clear their goods upon payment of excise duty calculated on the basis of the price-lists submitted by the petitioners. By an amendment, they have further prayed that various claims for deductions made by the petitioners from the assessable values of their products should be granted and the amounts of duty payable by and refundable to them should be calculated on that basis. During the pendency of the petition, by an interim order dated 9-12-1983, the assessing authorities were directed to permit the assessee to submit the statements of deductions/amendments in respect of price-lists already filed for a proper determination of excise duty liability in respect of deductions either given on the invoices or issued by way of credit note at a later date, claiming under the headings : (1) trade discount, (2) bonus discount, (3) annual turn over rebate, (4) product rebate, (5) additional product rebate, (6) free supply scheme, (7) incentive discount, (8) cash discount, (9) regular payment discount, (10) clearance, freight and octroi, and (11) turn over tax and surcharge, sales tax together with any other claims for deductions which may be admissible. The order directs the assessing authorities to permit the petitioners to file such documentary evidence as may be necessary and as directed by the assessing authorities to finalise the price-lists/refund claims within the period specified therein and to file in this Court the orders of assessment along with copies of statements of deductions from the price-lists / refund claims. Accordingly, the petitioners have filed with the assessing authorities various documents, including certificates from the Chartered Accountant as specified by the assessing authorities. There is extensive correspondence in this regard.

(2.) ULTIMATELY, the Assistant Collector of Central Excise, Division G-I, Bombay passed his order dated 6th June, 1984 disallowing various claims for deductions made by the petitioners. Before we deal with each head of claim, it is necessary to note that the petitioners have three factories in different parts of India for manufacturing identical goods. All these goods are sold by the petitioners from their sales depots where the goods are brought from the three factories of the petitioners. Since the goods manufactured are identical, the petitioners have not maintained at each sales depot separate lists pertaining to the goods brought from each of the factories. They have, therefore, claimed the deductions in respect of the goods manufactured at each of the factories by averaging out the deductions over their entire production.

(3.) THE first claim for deduction was in respect of trade discounts shown on the invoices. The petitioners have granted a trade discount of 3% which is generally displayed in the invoices. This has been allowed by the assessing authority. Hence, we need not examine this any further.