1996 (10) TMI 212

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..... . 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 credit balance. The percentage was worked out on the a .....

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..... 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 payment discount is admissible undoubtedly. Here we are dealing no .....

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..... ous 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. The reply to the show cause notice refers to a circular issued by the .....

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