Trade discount deductible despite non-uniform grant, where it reflects normal trade practice and no extra-commercial consideration exists.

Trade discount is deductible in determining assessable value even when it is not uniformly granted to all buyers, so long as it reflects normal wholesale trade practice and is not based on extra-commercial considerations. On that principle, extra trade discount and additional trade discount claimed for retail sale clearances were held admissible as deductions from the wholesale price. The Tribunal accepted that special trade discounts granted on business considerations remain permissible deductions, and the Revenue's challenge failed.

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Issues: Whether extra trade discount and additional trade discount, claimed as deductions while arriving at the assessable value for retail sale clearances, were admissible.

Analysis: The dispute concerned deductions from the wholesale price to determine the assessable value. The governing principle is that trade discount need not be uniform to all purchasers and may still be deductible if it is part of normal wholesale trade and is not founded on extra-commercial considerations. Relying on the settled position affirmed by the Supreme Court, the Tribunal held that special trade discounts granted on business considerations remain permissible deductions.

Conclusion: The deductions were admissible and the Revenue's challenge failed.

Ratio Decidendi: A trade discount is deductible in determining assessable value even if not uniformly granted to all buyers, provided it reflects normal trade practice and is not based on extra-commercial considerations.

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