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2013 (3) TMI 450 - AT - Central ExciseValuation - Trad Discount - Appellant manufacture cotton & acrylic yarn which is chargeable to excise duty. He claimed the deductions on trade discounts which he provides to the customers at the time of sale, which are in terms of the provisions of Section 4, permissible to those deductions, when at the time of clearance they passed to the buyers. - Department contested the deduction on the basis that there is no evidence that the discounts whose deduction was claimed, had been passed on to the customers at the time of clearances. Held that:- In the instant case, the dispute is not regarding admissibility of discounts but regarding payment of duty on the price charged by the Appellant at the time of clearance of the goods. Therefore, for permitting the deduction of trade discount, what is material is that it should be known and clearly understood prior to or at the time of removal and it is not necessary that it should be quantified and given to the buyer only at the time of removal. Thus the Department’s contention is that while the trade discounts claimed are admissible the deduction from assessable value is not permissible, as the discounts were not passed on to buyers at the time of clearance but later on by issue of credit notes. - Decided in favor of assessee.
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