Trade discount in excise valuation remains deductible even for depot clearances when uniformly allowed to all customers.

Under excise valuation principles, a consistently granted 22% trade discount could not be disallowed merely because the goods were cleared to depots and later sold from there. The Tribunal treated the factory-gate price, after deducting the uniform trade discount allowed to all customers, as the correct assessable value, and held that routing through depots did not change that position. The attempt to deny the deduction solely on the basis of depot clearances was therefore unsustainable, and the assessee remained entitled to the discount for valuation purposes.

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Issues: Whether the assessee was entitled to deduction of 22% trade discount in respect of clearances made to depots for the purpose of valuation under excise law.

Analysis: The clearances were made on a uniform pricing basis and the discount had been allowed consistently to all customers. The Tribunal followed its earlier view that the factory-gate price, after allowing the relevant discount, constituted the assessable value even where goods were routed through depots, and rejected the attempt to deny the discount merely because the goods were ultimately sold from depots.

Conclusion: The assessee was entitled to the 22% trade discount and the denial of such deduction was unsustainable.

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