2004 (9) TMI 435

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....iscount and turnover discount from the assessable value. 2. Shri A.L. Malhotra, learned Consultant, submitted that M/s. Havell's Electronics Pvt. Ltd., manufacture electrical change over switch, electrical fuse unit, electrical board and panel and parts thereof which are marketed through the dealers; that the Deputy Commissioner, under the Order-in-Original No. 41-49/2001, dated 28-9-2001, disallowed the deduction on account of cash discount and turnover discount on the ground that these discounts were paid at the end of the financial year and as such were not known before hand and were not uniformly given to each concern; that on appeal, the Commissioner (Appeals), under the impugned order, had allowed the deduction on account of c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... not aware of the scheme of cash discount. 4. We have considered the submissions of both the sides. It has been held by the Supreme Court in the famous case of Union of India v. Bombay Tyre International Ltd. 1984 (17) E.L.T. 329 (S.C.) that discounts allowed in the trade (by whatever name such discount is described) should be allowed to be deducted from the sale price having regard to the nature of the goods, if established under agreements or under terms of sale or by established practice, the allowance and nature of the discount being known at or prior to the removal of the goods. Such trade discount shall not be disallowed only because they are not payable at the time of each invoice or deducted from the invoice price. The Commi....