2006 (9) TMI 395

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....the Appellant. Shri M. Kannan, Advocate, for the Respondent. [Order per : P.G. Chacko, Member (J)]. -  The respondents have three divisions manufacturing watches, jewellery and clocks & bracelets. During 1996-97, they did not include "performance incentive" in the assessable value of the goods sold to their dealers. The original authority included the same in the assessable value and....

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.... were provisional. In the end of the year, the quantities of goods lifted by the dealers were ascertained and, on that basis "performance incentive" was given to the extent of 1% to 2% on the sale price. The exact percentage of this incentive was determined on the basis of the following parameters:- 1.      Maintenance of inventory level 2.    &nb....

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....bsp;Proprietor involvement etc. 2. Ld. SDR submits that the above parameters had nothing to do with the quantity or value of the goods. She submits that, based on the above parameters, two dealers having lifted identical quantities of goods from the assessee in a financial year would not necessarily receive equal "performance incentive". It is submitted that, if such "performance incentive....

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....h as the rate of incentive was determined on the basis of numerous parameters mentioned above. This fact is not in dispute. We find that none of the parameters has anything to do with the quantity or value of the goods. Hence the 'performance incentive' also cannot be held to have any nexus to the value of the goods. As rightly pleaded by the appellant, it cannot be held to be any trade discount f....