Cash discount as a deductible excise value item where the concession was disclosed and tied to timely payment.

Cash discount disclosed in the price list and made available to all buyers who paid within the stipulated period was an admissible deduction from assessable value for central excise purposes. The fact that many buyers did not actually avail the discount did not alter its deductibility, because entitlement depended on satisfaction of the payment condition, not on universal receipt of the concession. On that basis, the discount was correctly allowed and the demand for differential duty was not sustainable.

---

---

Issues: Whether cash discount declared in the price lists was deductible from assessable value for central excise purposes when it was not actually availed by most buyers but was known to all buyers and available to those who satisfied the stipulated condition.

Analysis: The Department did not dispute that the cash discount was disclosed to all buyers at the time of clearance or that it was available to every buyer who made payment within the prescribed period. The mere fact that many buyers did not in fact receive the discount did not take away its character as an admissible deduction, because entitlement depended on satisfaction of the payment condition and not on universal actual disbursement.

Conclusion: The cash discount was rightly allowed as a deduction, and the demand for differential duty was not sustainable.

---