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2005 (3) TMI 114 - SUPREME COURTDisallowance of the lower price on the ground that the bulk buyers did not constitute a different class of buyers and cannot be distinguished from other wholesale buyers; there cannot be more than one price for the same class of buyers Held that:- In order to get benefit of Section 4(1)(a) (proviso)(i) the assessee has to establish that discount claimed was in accordance with the normal practice of wholesale trade in the concerned goods sold to different classes of buyers, and it shall be subject to the existence of other circumstances specified in Clause (a). In the instant case the assessee-appellant has not placed on record the number of persons engaged in the wholesale trade. There may be cases, where in a particular region there is a scope for increasing the turnover by giving incentive to some. But there must be some intelligible criteria for treating the benefited persons differently from others. It is true that comparison can or may be made intra-region and not by taking all regions together. But even then the appellant has not shown the justification for wide variation within the same region. For example, in region where transactions are substantial i.e. Delhi the variation is between 546 and 1523. Similar is the position in Ahmedabad Zone where the variation is between 414 and 1541. In Madras Zone it varies between 52 to 368. No reason was indicated as to why the named persons were chosen. Even though it is open to the assessee to chose the persons, it cannot be left to its ipse dixit. No rational basis for selecting the persons was established. On considering the relevant factors, the authorities and CEGAT have recorded finding of fact that no rational basis has been established. Appeal dismissed.
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