Law: Central Excise Act, (I of 1944)

Section: 3,4

[Central Excise Act (I of 1944)]........Sections 3 & 4---Determination and levy of central excise duty--Principles---Excise duty was to be assessed on the value of product (paper) and that value had to be calculated in accordance with S.4 of Central Excise Act, 1944 whereby value for the purpose of assessment was the wholesale cash price for which the goods were sold for delivery at the place of manufacture and at the time of their removal there from, less any trade discount---Taxpayer/manufacturer; sold their product (paper) for a cash price to distributors, who sell the same to wholesale dealers, and wholesale dealers, passed the same on the market-From the cash price which the distributor was to pay, when they received goods from the factory they deducted a discount, part of which, the distributor retained for himself the other part being intended for the wholesale dealers to whom they sold the goods---Contention of appellant/manufacturer was that distributor being a privileged person and the agent of manufacturer, discount allowed to him was not the trade discount as contemplated by S.4 of the Central Excise Act, 1944; in the alternative it was contended that only that part of the discount should be deducted which was intended for the wholesale dealer"- Authorities, regarded the, introduction of the distributor between the manufacturer and the wholesale dealer as unnecessary and one which would affect the amount of excise duty, which had to be realized---For the purpose of assessment of duty, it was not material, whether their introduction was necessary---Intention of law was that excise duty should be paid by the manufacturers on the amount which they actually received---Demand for additional duty made by the Authorities being unjustified, some was not maintainable, in the eye of law---Finding recorded by the Authorities, was declared null and void and of no legal consequence---Show-cause notice issued to the manufacturers, and impugned order-in-original, was annulled being not maintainable. ORDER This appeal has been directed against Order-in-Original No. 35 of 2005 dated 20-05-2005, through which the learned Additional Collector (Adjudication),…

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