Quantity discount deductible in assessable value when passed on to dealers; denial beyond remand scope was unsustainable.

Quantity discount passed on to dealers was deductible from sale price for assessable value under central excise law, because the earlier finding on passing of the discount had attained finality and the remand was confined only to fresh examination of quantification evidence. The lower authorities erred by treating the discount as not known to buyers at clearance and by rejecting the deduction for want of further documentary proof, despite the Chartered Accountant's certificate and supporting material already on record. By travelling beyond the limited scope of remand, they misdirected themselves, so the demand raised on disallowance of the discount could not be sustained.

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Issues: Whether the appellant was entitled to deduction of quantity discount from the sale price for determination of assessable value under central excise law.

Analysis: The Tribunal noted that in the earlier round it had already found that quantity discount had been passed on to the dealers and had remanded the matter only for de novo consideration of the evidence relating to quantification. The lower authorities, however, proceeded on the erroneous basis that the discount was not known to the buyer at the time of clearance and treated the absence of further documentary proof as fatal, even though the Chartered Accountant's certificate and other material had already been placed before the authorities. Since the earlier finding that the discounts were passed on had attained finality and the remand was limited, the lower authorities travelled beyond the scope of the remand and misdirected themselves in denying the deduction.

Conclusion: The quantity discount was deductible and the demand based on its disallowance could not be sustained.

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