Central Excise - Valuation - Admissibility of discounted price for advance payments - Determination of assessable value - Regarding

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..... Finance (Department of Revenue) Central Board of Excise & Customs, New Delhi Subject : Central Excise - Valuation - Admissibility of discounted price for advance payments - Determination of assessable value - Regarding I am directed to say that a doubt has been raised as to whether a discounted price can be acceptable as the assessable value under Section 4 of the Central Excises and Salt Act, .....

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..... account would not be acceptable because the reduction is not a reduction in the price of the goods, but is because of the interest payable by the seller to the buyer for the period the money is paid in advance. CERA argued that, in the instant case also, the discount provided for advance payment was not a reduction in the price itself as it had no nexus with the sale or the sales promotion of the .....

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..... o the buyer in all such cases. The Board is, therefore, of the view that the earlier instructions, dated 8-8-1975 would not be applicable to the present case. Accordingly, abatements in such cases in which the discounts are linked up with advance payments without any time frame, would be admissible for determining the assessable value. 4. These instructions may be brought to the notice of all fie .....

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