NIRLON LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellants are an assessee under the Central Excise Act.

(2.) THE Dy. Commissioner vide Order dated 4 -9 -2000 confirmed the demand, which was upheld by the Commissioner (Appeals). Hence this appeal.

(3.) THE appellants sell their product Nylon Filament Yarn from various Depots situated in the parts of the country. They sell their goods through Indenting Agents with whom they have entered into agreement. As per this agreement, the Indenting Agents were entitled to trade discount calculated @ 2.5% for nylon yarn and 2% for POY and 2.5% on Polyester yarn the amount of invoice raised in their name, which was to be deducted from the invoice value (inclusive of excise duty, sales tax, octroi and any other taxes on such goods). Whenever an invoice was raised in the name of the party whose order the Indenting Agent had procured, then the brokerage or commission as the case may be payable to such agents calculated at the same rates on the invoice value. As per this agreement, the goods were to be supplied to the Indenting Agents only after receipt in advance of the fully payment towards the purchase price of the goods. The appellants were required to deliver the goods to such person or person as indicated by such agents. They were served Notices dated 20 -8 -1999 and 21 -10 -99 without quantification of any amount, requiring them to show cause as to why -