CC AND CE Vs. HAVELL ELECTRONICS PVT. LTD.

JUDGEMENT

(1.) In these two appeals, filed by M/s. Havell's Electronics Pvt. Ltd. and the Revenue against a common Order -in -Appeal No. 326/03 dated 26.8.2003, the issue involved relates to allowing of deduction on account cash discount and turnover discount from the assessable value.

(2.) Shri A.L. Malhotra, learned Consultant, submitted that M/s. Havell's Electronics Pvt. Ltd., manufacture electrical change over switch, electrical fuse unit, electrical board and pannel and parts thereof which are marketed through the dealers; that the Deputy Commissioner, under the Order -in -Original Nos. 41 -49/2001 dated 28.9.2001, disallowed the deduction on account of cash discount and turnover discount on the ground that these discounts were paid at the end of the financial year and as such were not known before hand and were not uniformly given to each concern; that on appeal, the Commissioner (Appeals), under the impugned order, had allowed the deduction on account of cash discount holding that the scheme of cash discount offered by the assessee was within the scope of permissible discount as laid down in various judgments; that the Commissioner (Appeals), 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 nature of cash discount and turnover discount; that they had shown deduction on account of cash discount and turnover discount in the appropriate column specified by the Board.

(3.) On the other hand, Sh. S.M. Tata, learned S.D.R., submitted that the Commissioner (Appeals) has rightly disallowed the deduction on account of turnover discount as the grant of the said discount was not subject to any condition promoting the marketability of the goods; that the cash discount is not deductable from the assessable value as the assessee has failed to submit the evidence to enable the Department to allow the discount; that they had submitted only some invoices, some orders of acceptance and some payment advices and some credit without establishing any co -relation; that there was no confirmed 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.