1988 (1) TMI 143

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....or delivery FOR destination. Their price circulars to their customers provided for the cash discount of 2% in 1980-81 and 2.5% in 1981-82. They used to issue invoices for the full price without the deduction of cash discount. Simultaneously, they used to send an advice to their Bank (through whom the customer retired the delivery documents) stating, inter alia, that if the customer retired the documents within 7 days of the presentation, the Bank should collect only the lower price net of the cash discount; otherwise, the Bank should collect the full price as per the invoice. The advice used to mention the full invoice price as well as the net cash discounted price. About 35% of their customers paid the price promptly within 7 days and got ....

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.... had not been declared in the price lists and that the appellants were thus guilty of suppression of true facts which attracted the extended time limit of 5 years for the short levy demand under Section 11A. The Collector (Appeals) agreed with the Asst. Collector and observed that the higher price at which the majority of the goods (65%) were sold was the normal price under Section 4(1)(a). The appellants are now in appeal before us. 3. The appellants assail the demand on the substantive ground [relying on 1984 (17) E.L.T. 4 (Bom.) - Jonson & Nicholson (I) Ltd.] as well as on the basis of the normal time limit of six months under Section 11 A. They add that the Bombay High Court held that cash discount allowed for prompt payment of the p....