RAMANUJAM, J

In all these appeals, the common question that arises for consideration is as to whether the respondents in each of these appeals is entitled to exclude the trade discount as well as cash discount in the determination of the manufacturing cost of articles for purposes of levy of excise duty.

2.Since the facts in all these writ appeals are similar, it is sufficient to refer to the facts in one case, viz. Writ Appeal No. 435 of 1978. The respondent in each of these appeals is a manufacturer of embroidered cotton fabrics. They are assessable to excise duty under Item 1911 of the First Schedule to the Central Excises and Salt Act, 1944 hereinafter referred to as the Act. Up to 30th November, 1973 the respondents were paying Central Excise duty atad valorembasis. From 1st December, 1973 they opted to pay duty at compounded rates under Rule 96J of the Central Excise Rules. Under Section 4(a) of the Act before its amendment the value of an article is the wholesale cash price for which an article of the like kind and quality is sold or is capable of being sold at the time of removal of the articles from the factory or any other premises of manufacture or production f