2007 (1) TMI 581

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.... D.B. Shroff for the Appellant Uma Shankar, (SDR) for the Respondent JUDGEMENT Per : Ms. Jyoti Balasundaram: The issue in dispute in the present appeal, viz. admissibility to deduction from assessable value of synthetic filament yarn of polyester manufactured by the appellants herein on account of cash discount which has been disallowed in cases where the cash discount of Re.1/- was no....

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..... If the dealer paid the money within one month, the cash discount was reduced to 3.5%. If the dealer paid after 45 days but before 60 days, a discount of a lower percentage was given. The petitioners claimed a cash discount at the rate of 5% irrespective of whether such discount was given or not in view the ratio of the decision of a Division Bench of this Court in the case of Jenson and Nicholso....

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....o be bound by the judgment of the Division Bench. The judgment of our High Court in the case of Jenson and Nicholson has been followed by the Madras High Court in the case of Union of India and Ors. v. SSM Bros. Pvt. Ltd. and Anr. -1986 (24) ELT 269 (Mad.) where the Madras High Court has held that cash discount is admissible irrespective of whether each customer avails of the said discount or not.....

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....that cash discount was admissible only if it was actually passed on to customers, the Hon'ble Karnataka High Court has only directed the central excise authorities to keep in mind the decision of the Bombay High Court in Goodlass Nerolac Paints Ltd. as upheld by the apex court, while taking a final decision in the matter. The recent decision of the Tribunal in CCE, Mumbai-II vs. Indian Tool Ma....