Assessable value deductions turn on proven trade discount and secondary packing not needed for wholesale trade.

Additional trade discount is deductible from assessable value only to the extent it is actually established by invoices, records, or other supporting material, and the Department must be able to verify the claim. The deduction was upheld only within that proven limit. Secondary packing charges are not part of assessable value where the packing is not required to place the goods in the stream of wholesale trade at the factory gate; on the facts, the Department failed to show that the packing was necessary for wholesale trade, so the charges were deductible.

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Issues: (i) whether additional trade discount was deductible from the assessable value of the goods; (ii) whether secondary packing charges were deductible from the assessable value.

Issue (i): whether additional trade discount was deductible from the assessable value of the goods.

Analysis: Deduction of additional trade discount depended on the actual material produced to show the discount granted by the principal to its dealers. The quantum of deduction could not extend beyond the amount actually established by invoices, records, or other supporting documents, and required verification by the Department.

Conclusion: The claim for deduction of additional trade discount was upheld only to the extent supported by the requisite material and verification, and the finding in that regard was not interfered with.

Issue (ii): whether secondary packing charges were deductible from the assessable value.

Analysis: Secondary packing not required for putting the goods into the stream of wholesale trade at the factory gate was not part of the assessable value. On the facts, the Department did not establish that the packing charges related to packing necessary for wholesale trade, or that the packing was other than secondary packing.

Conclusion: Secondary packing charges were held deductible from the assessable value.

Final Conclusion: The Revenue's challenge to the deductions failed, and the order allowing the deductions was sustained.

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