TMI Blog2017 (12) TMI 1089X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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. - E/558 to 561/08 - A/91050-91053/2017 - Dated:- 30-11-2017 - Shri Ramesh Nair, Member (Judicial) And Shri Raju, Member (Technical) None for the appellant Shri M.R. Melvin, Supdt. (AR) for the respondent ORDER Per: Ramesh Nair The fact of the case is that the appellants are clearing the goods to their customer Tata Motors Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent otherwise Tata Motors Ltd. was under obligation to release payment after 89 days. Therefore this discount is nothing but prompt payment discount. The adjudicating authority have observed that since the Tata Motors borne the expenses of 1.9% therefore it cannot be said that the discount has been passed on to the buyer. We do not agree with the contention for the reason that 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt admissible in every case whether passed on to customer or not [2000 (120) E.L.T. 751 (T)]. (3) In the case of CCE, Meerut v. Best Board Ltd., the Hon ble Tribunal, New Delhi held that cash discount to buyers making payment with 2 days of delivery - Practice known to trade - Discount also allowed to buyers not making payment within 2 days - Once it is shown that the scheme was known to the trade it would be an admissible deduction, giving discount to buyers not satisfying the condition of 2 days notwithstanding. 2000 (115) E.L.T. 835 (T). (4) In the case of West Cost Paper Mills Ltd. v. CCE, Bangalore, the Hon ble Tribunal, South Zonal Bench, Chennai have held that Prompt Payment i.e. Cash discounts are allowed as abatem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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