https://www.taxtmi.com/caselaws?id=762885 The CESTAT Ahmedabad ruled in favor of the appellant regarding valuation under Section 4 of the Central Excise Act, 1944. The Revenue disputed whether an additional 8-10% discount given to a related party constituted genuine trade discount or disguised commission. The Tribunal held that when a distributor purchases goods in their own account, discounts shown on invoices are legitimate trade discounts, not commissions. Following the Supreme Court precedent in Seshasayee Paper case, the Tribunal distinguished between discounts to distributors purchasing for themselves versus those acting as mere indentors. Since no flow-back of money was alleged between the parties, the 55% total discount was deemed admissible. The impugned order was set aside and appeal allowed. en-us Wed, 04 Dec 2024 00:00:00 +0530 Mon, 09 Dec 2024 17:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762885 The CESTAT Ahmedabad ruled in favor of the appellant regarding valuation under Section 4 of the Central Excise Act, 1944. The Revenue disputed whether an additional 8-10% discount given to a related party constituted genuine trade discount or disguised commission. The Tribunal held that when a distributor purchases goods in their own account, discounts shown on invoices are legitimate trade discounts, not commissions. Following the Supreme Court precedent in Seshasayee Paper case, the Tribunal distinguished between discounts to distributors purchasing for themselves versus those acting as mere indentors. Since no flow-back of money was alleged between the parties, the 55% total discount was deemed admissible. The impugned order was set aside and appeal allowed. Case-Laws Central Excise Wed, 04 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762885