1997 (6) TMI 99

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..... der per : Justice U.L. Bhat, President]. Appellant, engaged in the manufacture of footwear filed two price lists 14/986 and 22/86 declaring prices of footwear and also claiming deduction of trade discount at 12% per annum. The prices lists were approved and clearances were made on payment of appropriate duty. It was subsequently found that appellant was paying 12% discount to buyers in Bomba .....

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..... asoning of the two lower authorities was divergent. The reasoning of the Assistant Collector was that trade discount given was not uniform in all cases. The reasoning of the appellate authority was that the deposit received from buyers had depressed the price. The show cause notice did not make any reference to any deposit received from any buyer or the deposit having any effect on the price struc .....

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..... e cost of transportation. This appears to be a reasonable ground to reduce the discount to such buyers. In our opinion the buyers fall under different classes and offer of discount at different rates to different class of buyers would be within the framework of proviso (3) to Section 4(1)(a) of Central Excise Act, 1944 and therefore, the discounts granted should be allowed. There is no justificati .....

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