Trade discount admissibility: discount approved in price lists remained deductible despite not being separately shown on invoices.

Regional discount declared in approved Part VII price lists was deductible from assessable value where it was known at or before removal, and the fact that invoices showed only the net assessable value did not by itself make the discount inadmissible. The Department also failed to show that the discount was not passed on to buyers or that any excess amount had been collected. On that basis, the disallowance of the regional discount was unsustainable and the appeal succeeded.

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Issues: Whether the regional discount declared in the approved price lists was inadmissible merely because it was not separately shown in the invoices and whether the Department had established that the discount was not passed on to the buyers.

Analysis: The regional discounts had been declared in the Part VII price lists, approved by the Department, and the assessable value had been fixed after deducting those discounts from the ex-factory price. There was no evidence in the show cause notice or in the order to show that the discount had not been passed on to customers or that any excess amount had been collected. The non-mention of the discount in the invoices, where the invoices were raised only on the net assessable value, did not by itself render the discount inadmissible. A trade discount known at or prior to removal is deductible, and it need not be separately reflected in each invoice.

Conclusion: The disallowance of regional discount was unsustainable, and the appeal succeeded.

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