Pre-agreed turnover bonus qualifies as deductible trade discount in assessable value computation under central excise law.

Turnover bonus paid under the terms of sale was treated as a pre-agreed trade discount known before removal of the goods, so it could be deducted from the assessable value under Section 4 of the Central Excise Act. The Revenue failed to show that the bonus was unknown at the time of clearance, and the deduction was therefore accepted in favour of the assessee.

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Issues: Whether turnover bonus paid by the assessee was deductible from the assessable value under Section 4 of the Central Excise Act.

Analysis: The turnover bonus was part of the terms of sale and was known before removal of the goods. The discount position was treated as falling within the principle that a pre-agreed or pre-known trade discount is allowable in computing assessable value. On the facts, the Revenue did not establish that the turnover bonus was unknown at the time of clearance.

Conclusion: The turnover bonus was deductible from the assessable value and the appeal was allowed in favour of the assessee.

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