2010 (4) TMI 467 - AT - Central Excise

Valuation - Prompt payment discount - The allegation by the department is that the appellants have sold the impugned retreading machineries to their franchisee holders at a lower price. However it is contended on behalf of the appellants that a lower price is allowed to such buyers as they make prompt payments whereas in the case of other buyers such as govt. transport departments the payment is delayed by 80-90 days. Held that - department unable to show its non-availability to buyer who made such payment. Demand on ground that goods were sold to franchises at lower prices set aside.

Summary

The Appellate Tribunal CESTAT CHENNAI ruled in favor of the appellants in a case involving alleged sale of retreading machineries at a lower price to franchisee holders. The tribunal found no evidence to reject the appellants' pricing strategy, as prompt payment justified the lower price offered. The impugned order was set aside, and the appeal was allowed.