1996 (10) TMI 212

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..... llant. None, for the Respondents. [Order per : U.L. Bhat, President]. - Appellants are manufacturers of motor vehicle parts falling under the erstwhile Tariff Item 68. They were availing benefit of Notification No. 120/75 following invoice price procedure. They claimed deduction of 8% cash discount which was being made available to customers who were making advance payment or who had cash cr .....

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..... redit balance with the manufacturer in their name. If on the particular day advance payment is made or cash credit balance exists to a certain extent, 8% of that amount is to be given as discount. The lower authorities felt that appellant was getting indirect benefit from the advance payment. 3. Two aspects have to be borne in mind in resolving the controversy. Cash discount or prompt paymen .....

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..... ent or maintains credit balance cannot be in a more disadvantageous position than a customer who makes immediate payment or prompt payment. The former is certainly entitled to whatever benefit the latter would be entitled to get. If there is any extra benefit that is, than the former gets, that, in the given circumstances, may be regarded as the extent influenced by the advance deposit. 5. T .....

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