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CUSTOMS, EXCISE AND GOLD (CONTROL) APPELLATE TRIBUNAL, NEW DELHI
U.L. BHAT, K. SANKARARAMAN, JJ.
Govind Rubber Ltd. -Appellant
Versus
Collector of Central Excise, Chandigarh -Respondent
Final Order No. 2177/97-A Appeal No. E/3325/91-A, 2177 of 1997, E/3325 of 1991
Decided On : 17-12-1997
J.P. Kaushik, Ginny Bedi,M. Ali
Per Justice U.L. Bhat :
Appellant engaged in the manufacture of tubes for tyres was transferring the entire quantity produced to the depots and effecting sales therefrom. Appellant claimed deduction of charges for transportation of the goods from factory gate to the depots, trade discount and cash discount allowed to the buyers. The Assistant Collector allowed deduction on the first two counts but denied deduction of cash discount. This order having been confirmed by the Collector (Appeals), the present appeal has been filed.
2. The ground for rejection of the deduction for cash discount is that it is not granted at the time of clearance at the factory gate. The same logic could apply to trade discount also which has been allowed by the Assistant Collector. When all the sales are at the depots, one has to take the depot price and work backward to determine the factory gate price. In the process, legitimate cash discount allowed in respect of the sales at the depots has to be deducted in determining the assessable value. The view taken by the lower authorities is erroneous. The impugned order is set aside and the appeal allowed.
