2000 (5) TMI 98

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..... s, glazed ceramic tiles. In arriving at the assessable value of such tiles, the appellant deducted from their sale price a 3% cash discount. The appellant stated that such cash discount was available to a customer making payment for the goods within five days from the date of invoice. The notice was issued in May, 1998 proposing disallowance of this discount and demanding duty payable thereby on c .....

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..... count were not entitled to it because they had made payment beyond five days from the date of invoice. The discount, he said, therefore was not permissible, as a deduction. He also found that the extended period of limitation was applicable and confirmed the duty payable and imposed penalty under section 11AC of the Act. Hence this appeal. 3.Shri Hidaytullah, ld. Counsel for the appellant conten .....

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..... come to the same conclusion 4.The departmental representative contends that the discount is admissible only in respect of those sales where it has been actually availed of. The appellant's action in claiming the discount in cases where payments were received beyond five days from the date of invoice it amounts to discrimination on their part. Such a discount also does not satisfy the requirement .....

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..... respective of whether each customer availed of the said discount. This ratio has been followed by the Bombay High Court and other high courts in the judgments listed above. An appeal against one of these judgments in Goodlass Nerolac v. CCE has dismissed on merits by the Supreme Court as reported in 1994 (73) E.L.T. A 58. The decision of the Tribunal in Bharatia Cutler Hammer Ltd. v. CCE - 1988 (3 .....

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..... are concerned with. In any event, there is no specification. The discount does not appear to have been claimed as an admissible deduction and there is no reference in the notice to show cause dealing to that discount. 8.It has therefore to be held the discount was admissible in every case whether it had passed to the customers or not. Accordingly the demand for duty would not survive and no pen .....

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