2006 (12) TMI 324

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....e respective periods of dispute on payment of duty on assessable values which did not take into account certain interest paid by M/s. TELCO to their bankers under what is called 'Bill Marketing Scheme' or 'BMS arrangement.' The assessees (appellants) allowed cash discount of 1.9% to the buyer subject to condition that the discounted price of the goods be paid within 48 hours. The relevant invoices mentioned this discount separately. Under the BMS arrangement, which was provided by the buyer, the assessees collected payments of discounted price from HDFC bank within 48 hours from the date of delivery of the goods to the buyer. No amount other than the discounted price of the goods was received by the assessees from the buyer or the bank, a f....

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....ccordingly, the net price of the goods, after cash discount allowed by the seller to the buyer in a case of immediate or reasonably prompt payment of sale price by the latter, must be accepted as the assessable value of the goods inasmuch as such price is covered under the definition of 'normal transaction value'. Learned Counsel for the assessees have also pleaded limitation against the demands of duty except in the case of M/s. Sundaram Clayton Ltd., in whose case the show-cause notices were issued within time. However, it is urged that, on merits, the assessees have prima facie case. Learned SDR, on the other hand, opposes the above claim and submits that the so-called BMS arrangement is nothing but "bill discounting" i.e., deduction ....