https://www.taxtmi.com/caselaws?id=88413 Where distributors purchase goods on a principal-to-principal basis at arm's length, the discount allowed to them is deductible as trade discount in computing assessable value and cannot be recharacterised as commission. The fact that distributors were obliged to promote sales and observe resale price limits did not change the character of the transactions, especially where there was no evidence of any additional consideration flowing back to the manufacturer and the goods were not returnable to it. On those facts, the distributors were treated as wholesale buyers rather than consignment agents, and the deduction of trade discount was upheld. en-us Mon, 06 Apr 1998 00:00:00 +0530 Sat, 17 Sep 2011 16:43:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=88413 Where distributors purchase goods on a principal-to-principal basis at arm's length, the discount allowed to them is deductible as trade discount in computing assessable value and cannot be recharacterised as commission. The fact that distributors were obliged to promote sales and observe resale price limits did not change the character of the transactions, especially where there was no evidence of any additional consideration flowing back to the manufacturer and the goods were not returnable to it. On those facts, the distributors were treated as wholesale buyers rather than consignment agents, and the deduction of trade discount was upheld. Case-Laws Central Excise Mon, 06 Apr 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=88413