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2019 (2) TMI 1239 - AT - Central ExciseValuation - inclusion of value of cash discount not availed by the buyers in assessable value - case of the department is that the cash discount which was not availed by the buyers is part and partial of the transaction value - Held that:- Cash discount is additional discount that in case the buyer make the payment within 4 days from the date of sale, 2% discount is given and in case payment is made in 14 days, 1% discount is given. Being conditional discount operated only when time line given, but the discount is not given to if the payment is not made within the stipulated time i.e. 4 days or 14 days, as the case may be, the scheme of discount is not operated, in such a case - Amount of discount initially offered by the appellant, which was subsequently paid by the buyer shall become part and partial of transaction value falling under the definition of transaction value given in Section 4 of Central Excise Act 1994. Cash discount which is not at or prior to clearance of goods being contained in agreement of sale between assessee and buyers must, therefore, be deducted from sale price in order to know the value of excisable goods at time. Hence, cash discount was deductible. Appeal allowed - decided in favor of appellant.
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