MALWA COTTON SPG. MILLS Vs. CCE, CHANDIGARH

JUDGEMENT

(1.) This appeal has been preferred by the appellants M/s. Malwa Cotton Spg. Mills Ltd. against the impugned order dated 30.1.2001 passed by the Commissioner(Appeals) vide which he had confirmed the order in original dated 28.9.99 of the Deputy Commissioner and disallowed deductions on account of dyeing charges, trade discount and cash discount from the assessable value of their final product i.e. cotton yarn, manufactured by them.

(2.) The facts leading to the filing of the present appeal may briefly be stated as under:

(3.) The appellants are engaged in the manufacture of the cotton yarn falling under Chapter 52 of the CETA. They opted for provisional assessment as they were transferring the stock of the cotton yarn to their sale depots located at various places. They had been paying Central Excise duty on the said yarn on the tentative value at the factory gate. At the time of the final assessment for the period 1.10.96 to 31.3.97, they were disallowed deductions in all of Rs. 2611009/ - from the assessable value of the goods (cotton yarn) on account of octroi charges, dyeing charges, trade discount and cash discount. The Deputy Commissioner through order in original rejected their claim for refund of the amount. They then challenged that order of the Deputy Commissioner in appeal before the Commissioner (Appeals) who modified the same by allowing deductions on account of octroi charges, but disallowed the deductions on account of dyeing charges, trade discount and cash discount, through the impugned order.