Auction sale assessable value cannot be reduced by assumed trade discount unless the discount is actually available in the transaction.

Where vehicles are sold in public auction to the highest bidder at the bid price, trade discount cannot be presumed or deducted in computing assessable value unless it is actually available in the transaction. On the facts, there was no scope for any trade discount in the auction sale, so the lower appellate authority erred in allowing the deduction. The Revenue's challenge succeeded on this issue, and the assessable value had to be determined without reducing the auction price by an assumed trade discount.

---

---

Issues: Whether trade discount could be deducted from the auction price of vehicles sold in public auction for determining assessable value.

Analysis: The vehicles were sold to the highest bidders in a public auction on the price fixed by bid. In such a sale there was no scope for any trade discount being offered to the auction purchasers. The lower appellate authority erred in allowing deduction of trade discount from the auction price while determining assessable value.

Conclusion: Deduction of trade discount from the auction price was not permissible and the Revenue's challenge succeeded on this issue.

Ratio Decidendi: Where goods are sold in public auction to the highest bidder at the bid price, trade discount cannot be assumed or deducted in computing assessable value unless such discount is actually available in the transaction.

---