1997 (9) TMI 267

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....price lists for different periods claiming trade discount at the rates indicated therein. Assistant Collector passed separate orders disallowing the claim for deduction of discount. Collector (Appeals) reversed these orders and allowed deduction of discount. These orders are now challenged by the department. 3. Sales by the respondent are to wholesalers, who in turn, effect sales to retailers who include railway canteens and other canteens like Airport canteens, Cinema Theatre canteens and the like. In respect of each period respondent had filed 3 sets of price lists, one price list without any claim for deduction, another price list claiming deduction of trade discount at a particular rate and the third price list claiming deductio....

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....alers. Shri M. Ali, JDR besides supporting these grounds also contended that the wholesalers were authorised to effect sales only to approved canteens and in fact wholesalers had sold the goods to non-approved canteens also. 5. The contention that since the exact quantum of discount payable was not known before removal of the goods, the discount cannot be allowed is not sustainable. The orders passed by the appellate authority make it clear that this was the particular trade practice being followed by respondent and respondent's wholesalers. The price lists themselves indicate the rate of discount available under each price list. Therefore, the rate of discount must be taken to be known to the trade before removal. 6. It is ....