2001 (8) TMI 847 - AT - Central Excise

Summary

The Appellate Tribunal CEGAT, New Delhi ruled in favor of the appellant, allowing a 20% trade discount on Branded Chewing Tobacco cleared on a free supply basis to dealers for market seeding purposes. The decision was based on a precedent set by the Bombay High Court in the case of State of Maharashtra v. Griffon Laboratories Pvt. Ltd. [1992 (58) E.L.T. 36]. The Tribunal held that the discount is permissible for goods cleared on free supply basis to dealers.