2001 (1) TMI 191

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.... Member (J)]. - Both these Revenue appeals arise from OIA No. 194 & 195/96, dated 31-5-1996 passed by the Commissioner (Appeals), Trichy holding that the assessee is entitled for reduction of 2% in the value of clearances where payments are received after expiry of 30/45 days fall under the category of sale under prompt payment discount while the Asst. Commissioner had held that this 2% value is r....

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.... S. Sudarsan pleads for allowing Revenue's appeals in terms of the grounds made out by the Commissioner. 4. Respondents have sought for deciding the case on merits in terms of written submissions. They contend that prompt payment discount is a discount permissible under Rule 5(4)(d)(ii) of Central Excise Rules, as same was known prior or at the time of removal of goods sold or contracted for sa....

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....ry - Practice known to trade - Discount also allowed to buyers not making payment within 2 days - Once it is shown that the scheme was known to the trade it would be an admissible deduction, giving discount to buyers not satisfying the condition of 2 days notwithstanding. 2000 (115) E.L.T. 835 (T). (4) In the case of West Cost Paper Mills Ltd. v. CCE, Bangalore, the Hon'ble Tribunal, South Zona....

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....rt. They have also produced copies of the judgments cited above. 6. We have carefully considered the Revenue's contention in the appeal memo and have gone through the written submissions and the citations referred to by the assessee. We notice that the Asst. Commissioner had rejected their plea to grant 2% discount which the appellants are granting to all the customers in terms of the contract.....