https://www.taxtmi.com/caselaws?id=112108 Under the transaction value regime, an additional 1% to 2% discount allowed at the time of clearance, in lieu of not accepting returns or claims for damaged goods, was treated as part of the commercial terms of sale and not as post-sale compensation for defective goods. The earlier damage-discount cases applied where compensation followed returned or defective goods, whereas this discount was pre-determined and actually passed on at clearance. A Board circular clarified that discounts actually passed on in a transaction do not form part of transaction value, and departmental authorities are bound by that clarification. The discount was therefore not includible in assessable value. en-us Fri, 21 May 2004 00:00:00 +0530 Thu, 26 Apr 2012 16:23:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=112108 Under the transaction value regime, an additional 1% to 2% discount allowed at the time of clearance, in lieu of not accepting returns or claims for damaged goods, was treated as part of the commercial terms of sale and not as post-sale compensation for defective goods. The earlier damage-discount cases applied where compensation followed returned or defective goods, whereas this discount was pre-determined and actually passed on at clearance. A Board circular clarified that discounts actually passed on in a transaction do not form part of transaction value, and departmental authorities are bound by that clarification. The discount was therefore not includible in assessable value. Case-Laws Central Excise Fri, 21 May 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=112108