By TIOL News Service

MUMBAI, MAR 28, 2014: THE short question involved is whether the trade discount passed on by the appellant to Oil Marketing Company can be considered as trade discount or not and whether excise duty is leviable on this amount considering the same as part of the value of the goods sold.

The CCE, Mumbai-II confirmed the demand of Rs.1.68 crores for the period April, 2011 to October, 2011 along with interest and, therefore, the appellant is before the CESTAT.

It is submitted that huge demands have been raised by the Revenue in the matter since 2003 and eight appeals on the same issue have been filed before the CESTAT and the Tribunal had ordered pre-deposit of 6% of the duty demanded in all these cases and, therefore, a similar view should be taken in the present appeal also. Reliance is also placed on the decision in Bhagyanagar Gas Ltd. (2013-TIOL-241-CESTAT-BANG) wherein on the same issue the Tribunal had granted stay taking into account the fact that an amount of Rs.2.22 lakhs has been paid by the appellant against the confirmed demand of Rs.20.89 lakhs. It is also submitted that except for the demand for the period April, 2003 to March, 2008, all the other demands were for the normal period of time.

The Revenue representative submitted that in the matter of the last appeal which concerned the period July, 2010 to January, 2011, vide order dated 21.1.2014 the Bench had directed the appellant to make pre-deposit of 50% of the duty confirmed within eight weeks. And, therefore, a similar view ought to be taken in the present application also.

The Bench observed -

“5.1 We find that when the stay petition came up for consideration before this Tribunal on the last occasion on 21.1.2014, this Tribunal after considering the submissions made by both the sides, directed the appellant to make a pre-deposit of 50% of the duty confirmed on the ground that on the earlier decisions, pre-deposit was ordered taking into account the demand for the normal period of time. In the case before us, the entire demand is for the normal period of time. It is a well settled position that while considering various decisions on a matter, the latest decision should be preferred as that would have taken into account all the previous decisions on the subject. Therefore, following our latest order dated 21.1.2014, we direct the appellant to make a pre-deposit of 50% of excise duty confirmed within a period of eight weeks from today. On deposit of the above amount, pre-deposit of the remaining dues is waived and recovery thereof stayed during the pendency of the appeal.”

(See 2014-TIOL-462-CESTAT-MUM)