COLLECTOR OF C. EX. Vs. SPECTRUM PHARMACEUTICALS

JUDGEMENT

(1.) IN these two appeals - one filed by M/s. Spectrum Pharma Pvt. Ltd. and the other filed by the Revenue -the issue involved is deductions to be made from the assessable value under Section 4 of the Central Excise Act.

(2.) IN the impugned order, the Collector (Appeals) has allowed special discount given by the assessee company to their stockist. On the other hand, the Collector (Appeals) has disallowed the additional discount, free supply on account of breakages and date of expiry, and interest on finished goods/stocks. Shri S.S. Gupta, learned CA, submitted that the additional discount and free bonus is allowable as per the decision of the Supreme Court in the case of Metal Box of India Ltd. v. Union of India reported in 1995 (75) E.L.T. 449 S.C. He further submitted that this discount is allowable as long as the discount is known at or prior to removal of the goods. In respect of free supply on account of breakage, he relies upon the decision in the case of Raptakos, Brett and Co. v. Collector of Central Excise, Bombay reported in 1998 (75) ECR 294 (T) wherein the discount on account of breakage was allowed. Finally he submitted that the interest on receivables has been allowed by the Supreme Court in the case of Government of India v. MRF Ltd. reported in 1995 (75) E.L.T. 413 and also in the case of Raptakos (supra). He, however, conceded that the discount on account of expiry of the date of the medicines and deductions on account of interest on stocks are not available on account of the decisions of the Supreme Court in the case of MRF and of the Tribunals.

(3.) WE also heard Shri R.S. Sangia, learned DR who reiterated the grounds of appeal contained in the memo of appeal.