Trade discount on supplies through indentors was held inadmissible, with the Tribunal upholding the assessment order.

Trade discount on tailor-made solenoid valves supplied through dealers or stockists acting as indentors was held inadmissible for assessment purposes. The Tribunal applied the principle that trade discount is not allowable where supplies are made to indentors or agents, even though the goods were manufactured to specific customer requirements and were ordinarily supplied directly to actual users. It rejected reliance on an earlier order supporting admissibility because that view could not prevail over the Supreme Court ruling relied upon by the Revenue. The impugned order was upheld and the appeals failed on deductibility of trade discount in such routed sales.

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Issues: Whether trade discount claimed on sales of tailor-made solenoid valves supplied through dealers or stockists acting as indentors was admissible for assessment purposes.

Analysis: The goods were manufactured to specific customer requirements and were ordinarily supplied directly to actual users. In the cases where supplies were routed through dealers or stockists, the intermediary was treated as an indentor. The Tribunal applied the binding principle that trade discount is not permissible where the supply is made to indentors or agents, and held that the earlier order supporting admissibility could not prevail against the Supreme Court ruling relied upon by the Revenue.

Conclusion: The trade discount was held inadmissible, and the impugned order was upheld against the assessee.

Final Conclusion: The appeals failed on the issue of deductibility of trade discount in respect of supplies made through indentors or agents.

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