Trade discount deduction in excise valuation requires contemporaneous proof; an undated circular was held insufficient.

A deduction claimed as trade discount in excise valuation must be supported by clear contemporaneous material showing its nature and basis. An undated circular and invoices that do not disclose the discount were insufficient, and no tangible evidence explained how the discount rate was fixed. On that record, the claim could not be accepted on assumptions, and the order allowing the deduction was unsustainable.

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Issues: Whether the deduction claimed as trade discount was admissible for excise valuation purposes.

Analysis: The deduction was claimed on the basis of an undated circular, and the nature of the discount was not indicated in the invoices. No tangible material was produced to show that the deduction represented a genuine trade discount or to explain the basis on which the rate of 40% plus 2% had been fixed. In these circumstances, the claim could not be accepted merely on assumptions, and the order allowing the deduction lacked evidentiary support.

Conclusion: The deduction was not admissible and the order allowing trade discount was unsustainable.

Ratio Decidendi: A deduction claimed as trade discount in excise valuation must be supported by clear, contemporaneous and tangible material showing its nature and basis; an undated and unparticularised circular is insufficient.

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