Trade discounts on depot stock transfers were upheld in assessable value computation, and the departmental demand failed.

Trade discount and cash discount were held admissible on stock transfers of identical goods to depots, where assessable value had to be determined under the normal price provision rather than by applying the factory-gate discount structure. The appellate authority found that the department's basis for denying the discounts was not sustainable because the discounts were to be assessed against the statutory requirement of uniform allowance. On that footing, the departmental demand under Section 11A did not survive, and the appeal was dismissed.

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Issues: Whether trade discount and cash discount were admissible on stock transfers to depots while determining assessable value under the Central Excises and Salt Act, 1944.

Analysis: The dispute turned on whether the depot clearances could be governed by the price list and the discount structure allowed for factory gate sales, and whether the discounts satisfied the statutory requirement of being allowed uniformly. The appellate authority held that, for clearances of identical goods to sales depots by way of stock transfer, the assessable value had to be determined under the provision governing normal price, and that the discount basis adopted by the department was not sustainable in law.

Conclusion: Trade discount and cash discount could not be disallowed on the footing adopted by the department, and the departmental demand under Section 11A did not survive. The appeal was dismissed.

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