{"id":92213,"date":"2004-06-16T00:00:00","date_gmt":"2004-06-15T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004"},"modified":"2015-11-16T00:08:25","modified_gmt":"2015-11-15T18:38:25","slug":"mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004","title":{"rendered":"Mahavir Spinning Mills Ltd. vs Commissioner Of C. Ex. on 16 June, 2004"},"content":{"rendered":"<div class=\"docsource_main\">Customs, Excise and Gold Tribunal &#8211; Delhi<\/div>\n<div class=\"doc_title\">Mahavir Spinning Mills Ltd. vs Commissioner Of C. Ex. on 16 June, 2004<\/div>\n<div class=\"doc_citations\">Equivalent citations: 2004 (171) ELT 479 Tri Del<\/div>\n<div class=\"doc_bench\">Bench: K Usha, N T C.N.B.<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p>C.N.B. Nair, Member (T)<\/p>\n<p>1. This appeal is directed against orders rejecting the appellant&#8217;s request for provisional assessment of Sewing Thread manufactured and cleared by them to their Depots.\n<\/p>\n<p>2. During the hearing of the case, Id. Counsel for the appellant has pointed out that there is no sale at the time of removal from the factory.\n<\/p>\n<p>3. They are merely transfer of goods to appellant&#8217;s depots. Sales are from the depots. Different discounts are also given from the depots that is the reason for the appellant&#8217;s request for provisional assessment at the time of removal from the factory. Ld. Counsel has submitted that the rejection of the request is not justifiable in law at all. It is his submission that the original authority ordered to pay duty on &#8220;assessable value which also include the discounts&#8221;. This order is clearly contrary to law. The order of the Commissioner (Appeals) is also not justifiable since he has confirmed the order-in-original with the observation that any relief granted would not be meaningful.\n<\/p>\n<p>4. We have perused the records and heard Id. SDR also. The assessee&#8217;s request for provisional assessment had been made on very legitimate and legal grounds. The same should not have been rejected. The orders passed by the lower authorities are not sustainable at all. Direction to pay duty on an assessable value that includes discounts is clearly illegal. Valuation provisions provide for deduction of discounts from sale price so as to arrive at assessable value. Assessment is to be on net price. Payment of duty on a transfer price involves risk to revenue also, inasmuch as the price indicated in the transfer documents is purely notional. Even under provisional assessment, a purely notional price should not be basis for assessment. In these circumstances, we set aside the impugned orders and grant permission to the assessee to pay duty on provisional assessments basis at the time of removal of the goods from factory to the depots. The assessee shall comply with all procedural requirements to be decided by the jurisdictional authority. While this shall be the arrangement for future assessments, in regard to the assessments already made, it is directed that both sides shall review the position immediately and take action to claim refund\/take recovery action.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Customs, Excise and Gold Tribunal &#8211; Delhi Mahavir Spinning Mills Ltd. vs Commissioner Of C. Ex. on 16 June, 2004 Equivalent citations: 2004 (171) ELT 479 Tri Del Bench: K Usha, N T C.N.B. ORDER C.N.B. Nair, Member (T) 1. This appeal is directed against orders rejecting the appellant&#8217;s request for provisional assessment of Sewing [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[41,33],"tags":[],"class_list":["post-92213","post","type-post","status-publish","format-standard","hentry","category-customs-excise-and-gold-tribunal-delhi","category-tribunal"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Mahavir Spinning Mills Ltd. vs Commissioner Of C. Ex. on 16 June, 2004 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mahavir Spinning Mills Ltd. vs Commissioner Of C. Ex. on 16 June, 2004 - Free Judgements of Supreme Court &amp; High Court | Legal India\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.legalindia.com\/judgments\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004\" \/>\n<meta property=\"og:site_name\" content=\"Free Judgements of Supreme Court &amp; High Court | Legal India\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/LegalindiaCom\/\" \/>\n<meta property=\"article:published_time\" content=\"2004-06-15T18:30:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2015-11-15T18:38:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/www.legalindia.com\/judgments\/wp-content\/uploads\/sites\/5\/2025\/09\/legal-india-icon.jpg?fit=512%2C512&ssl=1\" \/>\n\t<meta property=\"og:image:width\" content=\"512\" \/>\n\t<meta property=\"og:image:height\" content=\"512\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Legal India Admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@legaliadmin\" \/>\n<meta name=\"twitter:site\" content=\"@Legal_india\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Legal India Admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004\"},\"author\":{\"name\":\"Legal India Admin\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#\\\/schema\\\/person\\\/0bfdffe9059fb8bb24a86d094609c5ea\"},\"headline\":\"Mahavir Spinning Mills Ltd. vs Commissioner Of C. Ex. on 16 June, 2004\",\"datePublished\":\"2004-06-15T18:30:00+00:00\",\"dateModified\":\"2015-11-15T18:38:25+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004\"},\"wordCount\":422,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#organization\"},\"articleSection\":[\"Customs, Excise and Gold Tribunal - Delhi\",\"Tribunal\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004\",\"url\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004\",\"name\":\"Mahavir Spinning Mills Ltd. vs Commissioner Of C. Ex. on 16 June, 2004 - Free Judgements of Supreme Court &amp; High Court | Legal India\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#website\"},\"datePublished\":\"2004-06-15T18:30:00+00:00\",\"dateModified\":\"2015-11-15T18:38:25+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Mahavir Spinning Mills Ltd. vs Commissioner Of C. Ex. on 16 June, 2004\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#website\",\"url\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/\",\"name\":\"Free Judgements of Supreme Court & High Court | Legal India\",\"description\":\"Search and read the latest judgements, orders, and rulings from the Supreme Court of India and all High Courts. A comprehensive database for lawyers, advocates, and law students.\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#organization\"},\"alternateName\":\"Free judgements of Supreme Court & High Court of India | Legal India\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#organization\",\"name\":\"Judgements of Supreme Court & High Court | Legal India\",\"alternateName\":\"Legal India\",\"url\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/wp-content\\\/uploads\\\/sites\\\/5\\\/2025\\\/09\\\/legal-india-icon.jpg\",\"contentUrl\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/wp-content\\\/uploads\\\/sites\\\/5\\\/2025\\\/09\\\/legal-india-icon.jpg\",\"width\":512,\"height\":512,\"caption\":\"Judgements of Supreme Court & High Court | Legal India\"},\"image\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/LegalindiaCom\\\/\",\"https:\\\/\\\/x.com\\\/Legal_india\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#\\\/schema\\\/person\\\/0bfdffe9059fb8bb24a86d094609c5ea\",\"name\":\"Legal India Admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g\",\"caption\":\"Legal India Admin\"},\"sameAs\":[\"https:\\\/\\\/www.legalindia.com\",\"https:\\\/\\\/x.com\\\/legaliadmin\"],\"url\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/author\\\/legal-india-admin\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Mahavir Spinning Mills Ltd. vs Commissioner Of C. Ex. on 16 June, 2004 - Free Judgements of Supreme Court &amp; High Court | Legal India","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.legalindia.com\/judgments\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004","og_locale":"en_US","og_type":"article","og_title":"Mahavir Spinning Mills Ltd. vs Commissioner Of C. Ex. on 16 June, 2004 - Free Judgements of Supreme Court &amp; High Court | Legal India","og_url":"https:\/\/www.legalindia.com\/judgments\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004","og_site_name":"Free Judgements of Supreme Court &amp; High Court | Legal India","article_publisher":"https:\/\/www.facebook.com\/LegalindiaCom\/","article_published_time":"2004-06-15T18:30:00+00:00","article_modified_time":"2015-11-15T18:38:25+00:00","og_image":[{"width":512,"height":512,"url":"https:\/\/i0.wp.com\/www.legalindia.com\/judgments\/wp-content\/uploads\/sites\/5\/2025\/09\/legal-india-icon.jpg?fit=512%2C512&ssl=1","type":"image\/jpeg"}],"author":"Legal India Admin","twitter_card":"summary_large_image","twitter_creator":"@legaliadmin","twitter_site":"@Legal_india","twitter_misc":{"Written by":"Legal India Admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.legalindia.com\/judgments\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004#article","isPartOf":{"@id":"https:\/\/www.legalindia.com\/judgments\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004"},"author":{"name":"Legal India Admin","@id":"https:\/\/www.legalindia.com\/judgments\/#\/schema\/person\/0bfdffe9059fb8bb24a86d094609c5ea"},"headline":"Mahavir Spinning Mills Ltd. vs Commissioner Of C. Ex. on 16 June, 2004","datePublished":"2004-06-15T18:30:00+00:00","dateModified":"2015-11-15T18:38:25+00:00","mainEntityOfPage":{"@id":"https:\/\/www.legalindia.com\/judgments\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004"},"wordCount":422,"commentCount":0,"publisher":{"@id":"https:\/\/www.legalindia.com\/judgments\/#organization"},"articleSection":["Customs, Excise and Gold Tribunal - Delhi","Tribunal"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.legalindia.com\/judgments\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.legalindia.com\/judgments\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004","url":"https:\/\/www.legalindia.com\/judgments\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004","name":"Mahavir Spinning Mills Ltd. vs Commissioner Of C. Ex. on 16 June, 2004 - Free Judgements of Supreme Court &amp; High Court | Legal India","isPartOf":{"@id":"https:\/\/www.legalindia.com\/judgments\/#website"},"datePublished":"2004-06-15T18:30:00+00:00","dateModified":"2015-11-15T18:38:25+00:00","breadcrumb":{"@id":"https:\/\/www.legalindia.com\/judgments\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.legalindia.com\/judgments\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.legalindia.com\/judgments\/mahavir-spinning-mills-ltd-vs-commissioner-of-c-ex-on-16-june-2004#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.legalindia.com\/judgments\/"},{"@type":"ListItem","position":2,"name":"Mahavir Spinning Mills Ltd. vs Commissioner Of C. Ex. on 16 June, 2004"}]},{"@type":"WebSite","@id":"https:\/\/www.legalindia.com\/judgments\/#website","url":"https:\/\/www.legalindia.com\/judgments\/","name":"Free Judgements of Supreme Court & High Court | Legal India","description":"Search and read the latest judgements, orders, and rulings from the Supreme Court of India and all High Courts. A comprehensive database for lawyers, advocates, and law students.","publisher":{"@id":"https:\/\/www.legalindia.com\/judgments\/#organization"},"alternateName":"Free judgements of Supreme Court & High Court of India | Legal India","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.legalindia.com\/judgments\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.legalindia.com\/judgments\/#organization","name":"Judgements of Supreme Court & High Court | Legal India","alternateName":"Legal India","url":"https:\/\/www.legalindia.com\/judgments\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.legalindia.com\/judgments\/#\/schema\/logo\/image\/","url":"https:\/\/www.legalindia.com\/judgments\/wp-content\/uploads\/sites\/5\/2025\/09\/legal-india-icon.jpg","contentUrl":"https:\/\/www.legalindia.com\/judgments\/wp-content\/uploads\/sites\/5\/2025\/09\/legal-india-icon.jpg","width":512,"height":512,"caption":"Judgements of Supreme Court & High Court | Legal India"},"image":{"@id":"https:\/\/www.legalindia.com\/judgments\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/LegalindiaCom\/","https:\/\/x.com\/Legal_india"]},{"@type":"Person","@id":"https:\/\/www.legalindia.com\/judgments\/#\/schema\/person\/0bfdffe9059fb8bb24a86d094609c5ea","name":"Legal India Admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g","caption":"Legal India Admin"},"sameAs":["https:\/\/www.legalindia.com","https:\/\/x.com\/legaliadmin"],"url":"https:\/\/www.legalindia.com\/judgments\/author\/legal-india-admin"}]}},"modified_by":null,"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/posts\/92213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/comments?post=92213"}],"version-history":[{"count":0,"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/posts\/92213\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/media?parent=92213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/categories?post=92213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/tags?post=92213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}