Cash discount deductible from assessable value where available to qualifying buyers despite some not availing it.

Cash discount allowed to dealers for payment in cash or by demand draft was deductible from assessable value where the discount was known to trade and available to all qualifying buyers. The fact that some buyers did not actually avail the discount did not justify denial of the deduction, because the discount remained part of the established pricing structure. On that basis, deduction of the cash discount was held allowable and the department's challenge failed.

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Issues: Whether cash discount allowed to dealers who pay the price in cash or by demand draft was deductible from the assessable value even if some buyers did not avail the discount.

Analysis: The discount was found to be known to the trade and available to all buyers who paid in cash or by demand draft. The fact that some buyers did not make such payment and therefore did not avail the discount did not justify refusing deduction of the discount from the price. Reliance was placed on prior decisions supporting deduction of such discount.

Conclusion: The deduction of cash discount was allowable and the department's appeal failed.

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