Quantity discount cannot be denied on a new ground not raised in the notice; assessee's claim was allowed.

Quantity discount could not be denied on a ground not raised in the show-cause notice or decided by the lower authority. The notices proceeded on the basis that the discount was inadmissible because the buyers had not met the stipulated minimum quantity or time condition, but the appellate authority rejected the claim for a different reason, namely alleged absence of evidence that the price difference was recovered. That new basis was outside the original controversy and could not sustain denial of the relief. The assessee was therefore entitled to the quantity discount claimed, and the impugned order was set aside with consequential relief.

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Issues: Whether the assessee was entitled to deduction of quantity discount in the assessable value when the buyers had not fulfilled the stipulated minimum quantity or time condition, and whether the benefit could be denied on the new ground that the buyers were not asked to pay back the difference in price.

Analysis: The notices to show cause proceeded on the footing that the quantity discount was not admissible where the minimum quantity had not been purchased within the prescribed period. The appellate authority, however, denied relief on a different basis, namely that no evidence had been produced to show recovery of the price difference from such buyers. That basis was not part of the notice or the adjudication by the lower authority and introduced a new ground for denial of the claimed relief.

Conclusion: The assessee was entitled to the benefit of quantity discount as claimed, and the contrary reason adopted by the appellate authority could not be sustained.

Final Conclusion: The appeal succeeded and the impugned order was set aside, with consequential relief as permissible in law.

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