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TMI Blog2005 (10) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... notice raising demand of duty of Rs. 85,36,435/- on the ground that such different trade discounts to different buyers in were not permissible inasmuch as they were not uniform and as such the same cannot be deducted from the assessable value. Appellants contended that the different amounts of discounts were being given to their customers, who were different categories/classes of buyers and discounts were permissible In terms of the settled position of the law as declared by the Tribunal in various decisions. 2. The Assistant Commissioner adjudicated the said show cause notice and observed that trade discounts need to be uniform and may very from dealer to dealer, place to place and from time to time depending upon the commercial exige ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siderations. As regards the sale "by the assessee at different prices to different classes of buyers", it appears reasonable to assume that it is for the asses to classify his buyers according to his commercial considerations. Of the classification has to be rational and identifiable. Based purely on commercial considerations. It could not be arbitrary or capricious If the classification of his buyers by the assessee is within the basic scheme for determination of the assessable value under Section 4 of the Act, them no objection could reasonably be raised by the Central Excise department for determining the assessable value on the basis "different prices to different class of buyers" (nor being related persons). The expression "different ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondition in a particular region or at a particular point of time, financial crises, cut throat competition and introduction of a product in a new region. These discounts were based upon the commercial consideration. It has been further argued that the appellate authority has set aside the order of the Assistant Commissioner on the ground that th3re were different discounts within the same class of buyers. Ld. Advocate submits that varying discounts to different customers based upon the commercial consideration is permissible as held by the Tribunal in the case of Grasim Industries Ltd. Vs. Commissioner of Central Excise, Belgaum, reported in 2001 (46) RLT 448 (CEGAT-Ban)=2001 (138) ELT 570 (Tri,-Bang.) and in the case of Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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