Discounts to Dealers Not Trade Discounts; Appeal Allowed Due to Limitation Bar, No Evidence of Mis-declaration Found.

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....The Tribunal held that discounts passed by the appellant to dealers do not satisfy the requirement of trade discount for deduction, as the discount is declared for a particular model and the end-user does not receive it, making it arbitrary. Regarding the extended period of limitation, the appellant followed the mechanism of passing incentives/discounts since 2008, and the department raised no objection until after the Tata Motors Ltd. judgment. The demand was computed based on available records, and no suppression or mis-declaration of facts occurred. In the absence of suppression or mis-declaration, the larger period of limitation cannot be invoked. Consequently, the demand is barred by limitation. The impugned order is modified, and the appeal is allowed on the ground of limitation only.....