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TMI Blog2016 (6) TMI 1151X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Purolator India Ltd. Versus Commissioner of Central Excise, Delhi – III [2015 (8) TMI 1014 - SUPREME COURT], where it was held that the transaction value as defined in Section 4 (3) (d) is the agreed contractual price. If the agreed contractual price is arrived at with cash discounts in terms of the agreement of sale between assessee and its buyers, then the Apex Court has held that the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iff. They sell their product to different customers and allow cash discounts to those who make prompt payment. The appellant made payment of excise duty on the discounted price after deducting the cash discounts. When the buyers did not make payment promptly, as per the Schedule, then the discount becomes not allowable to the customers. Such amounts have been recovered back from the customers by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision of the Apex Court, the status of cash discounts, viz-a-viz, the concept of transaction value as defined in the Section 4 has been examined in detail. The operative part of the decision is given below: It can be seen that Section 4 as amended introduces the concept of transaction value so that on each removal of excisable goods, the transaction value of such goods becomes determinabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r such price has been paid, has been paid in part, or has not been paid at all. The basis of transaction value is therefore, the agreed contractual price. Further, the expression when sold is not meant to indicate the time at which such goods are sold, but is meant to indicate that goods are the subject matter of an agreement of sale. Once this becomes clear, what the learned Counsel for the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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