Average discount deduction accepted for excise valuation, subject to verification of actual discounts and monthly reconciliation.

Average discount claimed in price lists was treated as a permissible deduction in determining assessable value under the Central Excise Act, 1944, where the assessee relied on past actual discounts and undertook to reconcile any differential duty on actuals at month-end. The Tribunal accepted average discount as a convenient clearance-stage method, but only on the basis that the actual discount position would be verified and monthly returns finalised with reference to actual figures. The operative effect was that deduction was allowed subject to verification and adjustment against actual discount data.

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Issues: Whether average discount claimed in the price lists was admissible as a deduction while determining assessable value under the Central Excise Act, 1944.

Analysis: The Tribunal noted that the appellant sought deduction of average discount on the basis of past actual discounts and was willing to reconcile the differential duty on the basis of actuals at the end of the month. It was found that average discount could be approved as a convenient method for deduction at the clearance stage, provided the actual discount position was verified and the monthly returns were finalised on the basis of actuals.

Conclusion: The average discount was held admissible as a deduction, subject to verification of actuals and finalisation of monthly returns on the basis of actuals.

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