Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (12) TMI 1089 - AT - Central ExciseValuation - includibility - financial charge for release of payment immediately - case of department is that 1.9% discount given by appellant to Tata Motors Ltd. towards compensation of financial charges charged by their bankers for obtaining payment immediately is not a discount but an additional consideration received by the appellant - Held that: - this discount is nothing but prompt payment discount - the appellant have admittedly passed on this discount to the buyer Tata Motors Ltd. in their invoice for clearance of goods. 1.9% expenses incurred by Tata Motors Ltd. is an arrangement between them and the banker. The appellant have extended this discount since they have received the prompt payment instead of waiting for 89 days. Therefore the discount extended by the appellant cannot be part and parcel of the assessable value and the deduction on that account is admissible under Section 4(1)(a). The discount of 1.9% cannot be included in the assessable value - appeal allowed - decided in favor of appellant.
|