2003 (3) TMI 431 - AT - Customs

Appellate Tribunal allows trade discount inclusion in assessable value

The Appellate Tribunal CEGAT, Chennai ruled in favor of the importer, allowing the inclusion of a trade discount in the assessable value of goods. The ... Assessable value - trade discount - invoice disclosure of discount - evidentiary value of supplier's certificate - flow back of considerationAssessable value - trade discount - invoice disclosure of discount - evidentiary value of supplier's certificate - flow back of consideration - Whether the lump-sum trade discount shown in the supplier's invoice and substantiated by a subsequent supplier's certificate is required to be added to the assessable value of the imported goods. - HELD THAT: - The appellate authority erred in denying the benefit of the discount solely because the invoice did not separately indicate the percentage of discount. The supplier subsequently furnished a certificate stating that the discount amounted to 16.23% and constituted the normal trade discount extended to purchasers. There is no material on record to displace the supplier's certificate or to show that the invoice amount was subject to any additional flow back to the supplier. The total consideration shown in the invoice was paid by the importer and no contrary evidence was produced. In these circumstances the rejection of the discount by the Commissioner (Appeals) lacked justification and the impugned order cannot be upheld. [Paras 2, 3]The trade discount of US $1793, supported by the supplier's certificate and not shown to be subject to any flow back, need not be added to the assessable value; the impugned order is set aside and the appeal is allowed.Final Conclusion: Appeal allowed; the trade discount declared in the invoice and corroborated by the supplier's certificate is to be recognized for the purpose of assessable value, and the impugned order is set aside with consequential relief, if any. The Appellate Tribunal CEGAT, Chennai ruled in favor of the importer regarding the inclusion of a trade discount in the assessable value of goods. The tribunal found that the importer was entitled to the discount, as clarified by the supplier, despite the lack of percentage indicated in the invoice. The tribunal set aside the impugned order and allowed the appeal.