1999 (5) TMI 148 - AT - Central Excise

Summary

Issues involved:
The appeal challenges the deduction of cash discount from the assessable value of goods cleared by the respondents, specifically when the payment was not made promptly as per the offer on the invoices.

Summary:

Issue 1: Deduction of cash discount from assessable value
The Revenue appealed against the Order-in-Original allowing deduction of cash discount from assessable value, arguing that such deductions should only be allowed when actually availed by customers, not across the board. Citing various precedents, the Advocate for respondents contended that cash discount for prompt payment is deductible irrespective of individual customer availing it. The Tribunal, considering the decisions in Bharatia Cutler Hammer Ltd. and Goodlass Nerolac Paints cases upheld the deduction of cash discount across the board, dismissing the Revenue's appeal.

Conclusion:
The Tribunal found that the issue was settled by previous decisions and the Revenue failed to distinguish or address these precedents. Relying on the rulings in Bharatia Cutler Hammer Ltd. and Goodlass Nerolac Paints cases, the Tribunal upheld the deduction of cash discount from the assessable value across the board, leading to the dismissal of the Revenue's appeal.