https://www.taxtmi.com/caselaws?id=73386 A distributor buying as principal, and not as a commission agent, did not create a principal-agent relationship merely because the agreement required showrooms, sales staff, repurchase of unsold stock, and sales promotion arrangements. The distributor's obligation to undertake sales promotion, publicity and advertisement at its own cost amounted to additional consideration flowing from the buyer to the assessee, so the disclosed price was not the sole consideration. Rule 5 of the Central Excise (Valuation) Rules, 1975 therefore applied, and only the money value of that additional consideration was includible in assessable value. The entire 27.5% discount could not be disallowed merely because such additional consideration existed. en-us Wed, 09 Sep 1987 00:00:00 +0530 Tue, 31 May 2011 15:58:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=73386 A distributor buying as principal, and not as a commission agent, did not create a principal-agent relationship merely because the agreement required showrooms, sales staff, repurchase of unsold stock, and sales promotion arrangements. The distributor's obligation to undertake sales promotion, publicity and advertisement at its own cost amounted to additional consideration flowing from the buyer to the assessee, so the disclosed price was not the sole consideration. Rule 5 of the Central Excise (Valuation) Rules, 1975 therefore applied, and only the money value of that additional consideration was includible in assessable value. The entire 27.5% discount could not be disallowed merely because such additional consideration existed. Case-Laws Central Excise Wed, 09 Sep 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=73386