Trade Notice No.02/CE/SHG/2011

Dated Shillong the 24^th  January, 2011

Subject: Clarification regarding Quantity discounts, bonus
                   quantities, etc. cleared without payment of duty under
                   MRP based assessment - reg.

            The Trade, Industry and all concerned are informed that the larger bench of CESTAT in the case of Indica Laboratories Vs CCE, Ahmedabad 2007(213) ELT 20(T-LB), has held that quantity discount, bonuses etc. are applicable for the valuation of goods under section 4 of the Central Excise Act, 1944 and not in case of goods valued under Section 4A.

2.         The party has appealed against the said order before High Court     of Gujrat. However, no stay has been granted by the High Court against the said order of the larger bench of tribunal and accordingly the aforementioned order of the larger bench of tribunal is to be followed.

3.         Hindi version would follow.

Authority:

Circular No. 938/28/09-CX

Dated 29^th November, 2010

F.No. 6/5/2009-DS (CX.1 & 4)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Custom

                                                (S. R. Baruah)

Commissioner