Collector of Central Excise Vs. American Auto Services

Collector of Central Excise vs American Auto Services

Type Court Judgment Court Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi Decided Mar 31, 1998

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Citation: sooperkanoon.com/13206
Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi
Decided On: Mar 31, 1998
Subject: Land Acquisition

Case Summary

AI-generated summary - not the official court judgment text.

Land Acquisition

Key legal issue: Land Acquisition

Parties & Advocates

Appellant / Petitioner

Collector of Central Excise

Respondent

American Auto Services

Legal References

Reported In: (1998)LC321Tri(Delhi)

Excerpt

1. the short question arising for consideration is whether cash discount claimed by the respondent would be admissible. the cash discount declared by the respondent was in the form of prompt payment discount which was known to the buyers by reason of circulars issued by the respondent. all buyers who made prompt payment were given the discount. such buyers who did not pay were not given the discount. the show cause notice indicated that the cash discount was not deductible since it was not given to all buyers. the assistant collector being satisfied that the discount was given to all buyers who were eligible for the same, dropped the proceedings. the collector (appeals) declined to interfere at the instance of the department being aggrieved has filed this appeal.2. from what we have indicated above, it is clear that cash discount was declared subject to the condition of prompt payment and was given to all those who satisfied the condition. the mere fact that some buyers did not make prompt payment and were, therefore, not eligible for discount, is no ground to hold that the discount cannot be deducted. we find no ground to interfere and accordingly dismiss the appeal.

Full Judgment

1. The short question arising for consideration is whether cash discount claimed by the respondent would be admissible. The cash discount declared by the respondent was in the form of prompt payment discount which was known to the buyers by reason of circulars issued by the respondent. All buyers who made prompt payment were given the discount. Such buyers who did not pay were not given the discount. The show cause notice indicated that the cash discount was not deductible since it was not given to all buyers. The Assistant Collector being satisfied that the discount was given to all buyers who were eligible for the same, dropped the proceedings. The Collector (Appeals) declined to interfere at the instance of the department being aggrieved has filed this appeal.

2. From what we have indicated above, it is clear that cash discount was declared subject to the condition of prompt payment and was given to all those who satisfied the condition. The mere fact that some buyers did not make prompt payment and were, therefore, not eligible for discount, is no ground to hold that the discount cannot be deducted. We find no ground to interfere and accordingly dismiss the appeal.

Same Court & Year Customs Excise and Service Tax Appellate Tribunal CESTAT Delh... Same Parties Collector of Central Excise vs American Auto Services Same Subject Land Acquisition