Cash discount deductible when the discount scheme is known before clearance, even if not every buyer uses it.

Cash discount was deductible from assessable value where the discount scheme was known to buyers at or before removal of the goods, even if not every purchaser actually availed it. The applicable principle was that trade discount need not be uniform across all customers, and admissibility depends on the scheme being disclosed and available at clearance, not on universal uptake. On that basis, the discount was treated as an allowable deduction from the sale price and the issue was resolved in favour of the assessee.

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Issues: Whether cash discount was deductible from the assessable value when the discount scheme was known to buyers at the time of clearance of goods, even if not all purchasers actually availed it.

Analysis: The discount structure disclosed that a specified percentage of the price would be allowed if payment was made in cash or within the stipulated time. The discount was therefore known to the purchaser at or prior to removal of the goods. Trade discount need not be uniform, and its admissibility does not depend on every customer actually taking the benefit, so long as the scheme is known and allowed at clearance.

Conclusion: Cash discount was admissible for deduction, and the issue was decided in favour of the assessee.

Ratio Decidendi: Trade discount, including cash discount, is deductible from the sale price if the discount scheme is known to the purchaser at or before removal of the goods, regardless of whether each buyer actually avails of the discount.

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