Manufacturer's cost of free gift not deductible as trade discount per CEGAT ruling+

The Appellate Tribunal CEGAT, New Delhi held that the cost of a plastic mug provided as a free gift by a Cadbury's Bournvita manufacturer cannot be deducted as a trade discount from the assessable value, following precedent from Glaxo (I) Ltd. v. Collector of Central Excise, Kanpur. The appeal was dismissed.

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The Appellate Tribunal CEGAT, New Delhi ruled that the cost of a plastic mug given as a free gift by a manufacturer of Cadbury's Bournvita cannot be deducted as a trade discount from the assessable value. The decision was based on a previous ruling in Glaxo (I) Ltd. v. Collector of Central Excise, Kanpur. The appeal was dismissed.

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