Central Excise - Valuation - Admissibility of discounted price for advance payments - Determination of assessable value - Regarding

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....23-4-1987 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise & Customs, New Delhi Subject : Central Excise - Valuation - Admissibility of discounted price for advance payments - Determination of assessable value - Regarding I am directed to say that a doubt has been raised as to whether a discounted price can be acceptable as the assessable value....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....te of payment, however, any reduction in price on this account would not be acceptable because the reduction is not a reduction in the price of the goods, but is because of the interest payable by the seller to the buyer for the period the money is paid in advance. CERA argued that, in the instant case also, the discount provided for advance payment was not a reduction in the price itself as it ha....