Quantity discount not deductible from assessable value where it depended on meeting a purchase threshold.

A quantity discount offered only to purchasers buying 80,000 boxes or more within twelve months was not deductible from assessable value under Section 4(4)(d)(ii) of the Central Excise Act, 1944. The discount was contingent on meeting a specified purchase threshold and was therefore not available to all buyers; it was not a cash discount. The principle applicable to cash discounts, which may be allowed if known before delivery, did not apply. An earlier authority on a different type of discount was distinguished, and the Tribunal's view was upheld against the assessee.

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Issues: Whether the quantity discount offered only to buyers purchasing eighty thousand boxes or more in twelve months was liable to be excluded from the assessable value under Section 4(4)(d)(ii) of the Central Excise Act, 1944.

Analysis: The discount in question was a quantity discount, not a cash discount. It was conditional upon the purchaser buying a specified quantity within the stipulated period and was therefore not available to all buyers. A cash discount, by contrast, is available to all purchasers and may be allowed if known prior to delivery, but that principle did not govern the present case. The earlier authority relied upon concerned a different kind of discount and did not assist the assessee.

Conclusion: The quantity discount was not deductible from the assessable value. The Tribunal's view was upheld, and the issue was decided against the assessee and in favour of the Revenue.

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