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TMI Blog2004 (9) TMI 435X X X X Extracts X X X X X X X X Extracts X X X X ..... [Order per : V.K. Agrawal Member (T)]. In these two appeals, filed by M/s. Havell s Electronics Pvt. Ltd. and the Revenue against a common Order-in-Appeal No. 326/2003, dated 26-8-2003, the issue involved relates to allowing of deduction on account of cash discount and turnover discount from the assessable value. 2. Shri A.L. Malhotra, learned Consultant, submitted that M/s. Havell s E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), however, disallowed them the turnover discount holding that the same was not a normal discount as it was not based on any recognisable commercial scheme. The learned Consultant submitted that the discount given by them was known to their customers prior to removal of the goods, which is evident from the invoices issued by them; that the discount was payable, however, subsequently, being in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and established policy of the assessee in giving the cash discount which goes to show that the buyers were not aware of the scheme of cash discount. 4. We have considered the submissions of both the sides. It has been held by the Supreme Court in the famous case of Union of India v. Bombay Tyre International Ltd. 1984 (17) E.L.T. 329 (S.C.) that discounts allowed in the trade (by whatever name s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in all cases the quantum of cash discount is made known to the buyer prior to the sale. Nothing has been brought on record by the Revenue to rebut this specific finding of the Commissioner (Appeals). There is no force in the grounds of appeal filed by the Revenue that merely because in some cases the period allowed for payment was up to 60 days also, the buyers were not aware of the scheme of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of this nature is not a trade discount as it is understood in commercial parlance. There is nothing on record to suggest that this discount was not known to the customers prior to the removal of the goods. The mere fact that the discount was not allowed at the time of each invoice will not make it an inadmissible discount. It has been held by the Supreme Court in Bombay International Tyre (supra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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