Trade discount deductible from assessable value despite non-availment by individual buyer where discount was part of price structure.

A 2% discount for immediate or advance payment, disclosed in the price list and available to wholesale buyers meeting the stated condition, formed part of the commercial price structure and was deductible from assessable value. The deduction could not be denied merely because a particular buyer did not actually make prompt or advance payment. A condition requiring the discount to be passed on in each individual case was held unsustainable, so the assessable value had to be reduced by the discount irrespective of actual availing by the buyer.

---

---

Issues: Whether a 2% discount for immediate or advance payment, declared in the price list, was deductible from the assessable value even when a particular buyer did not actually avail of the discount.

Analysis: The discount was found to be known to trade and available to wholesale buyers who satisfied the stipulated condition for availing it. In such circumstances, the discount formed part of the commercial price structure and could not be denied merely because a particular buyer did not make prompt or advance payment. The condition imposed by the Superintendent, making deduction dependent on actual passing on of the discount to the buyer in each case, was held unsustainable.

Conclusion: The deduction had to be allowed from the assessable value irrespective of whether the individual buyer actually took advantage of the discount.

---