Turnover discount at clearance stage cannot be barred where no legal provision supports the restriction.

A provisional assessment condition disallowing deduction of turnover discount at the time of clearance of goods from the factory to depots was found inconsistent with law. The assessee had consistently received the discount in the past, and the competent authority had allowed it at the stage of clearance. As no legal provision authorised prohibiting that deduction at removal from the factory or from depots to buyers, the condition was held unsustainable and the Revenue's appeal was rejected.

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Issues: Whether the condition imposed in the provisional assessment order, disallowing deduction of turnover discount at the time of clearance of goods from the factory to depots, was legally sustainable.

Analysis: The assessee had been receiving turnover discount consistently in the past and the discount was being allowed by the competent authority at the stage of clearance. The record disclosed no legal provision authorising a condition that such deduction could not be granted at the time of removal of goods from the factory or from depots to buyers. The condition imposed in the provisional assessment order was therefore inconsistent with law.

Conclusion: The condition was unsustainable and the assessee succeeded. The Revenue appeal was rejected.

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