2007 (9) TMI 89

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....ounted 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 fact acknowledged in the impugned orders. Under the BMS arrangement, the bank received interest from M/s. TELCO Ltd. The quantum of this interest was equal to the discount allowed by the assessees to the buyer. The collection of interest by the bank from M/s. TELCO Ltd. was occasioned by belated remittances of amounts to the ba....

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...., requires to be included in the assessable value of the goods. We have noticed two Circulars of the Board No. 354/81/2000-TRU, dated 30-6-2000 and No. 643/34/2002-CX, dated 1-7-2002, which clarified the point. Accordingly, 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'. 3.Learned SDR submitted that the so-called BMS arrangement was nothing but "bill discounting" i.e., deduction made by the bank for premature encashment of assessee's bills. It was submitted that such amounts were not dedu....