Excise valuation

Assesable value willl be 14000

Please refer new rule 4

According to the same, even refund can be claimed for the duty paid & subsequenty price reduction allowe (i.e. discount allowed)

refer Traco Cable vs CCE ( I hope i hv refered correct case law)

Answer in the book is 15000 only.... i.e 1000 discount will be included in the AV...as price is not the sole consideration here.....

which book.

I mean it looks to me as if the price is the sole consideration.

You tell me what else is d consi?

yeah.. even i feel this is to be deducted and the AV has to be 14000... m unable to understand the logic given in Bangar's book ..

All discounts , be it trade or cash discount are to be deducted from transaction value... so this discount will also qualify for deduction as a cash discount i guess...

book-CA Yogendra Bangar

this question appeared in RTP 2005

actually i hv nt yet started reading these books exam oriented coz yet not bought.

I am refering to the bare act words & according to me thats the answer.

Banger's logic could be that discount is generally not allowed to the other buyers.

So principle of unjust enrichment would apply and it can be said AV is 15000.

But the facts are to be proved.

yes it can be a connection wid other points.

I think every sale has to be treated separately even if they charge different prices from different UNRELATED buyers ...so even if this discount is not offered to others, i think this should be allowed to be deducted... like policy of cash discount nd trade disc.is different for every customer..

there are other points in the question like dharmada charges, free after sale service etc. but they have been treated separately.... only for this point of discount they have written that AV will be 15000 only as price is not the sole consideration here...

So u think coz of these additional considerations they have taken the AV to be 15000??  Any connection u see?

There might be a connection which m not able to trace....

I was just asking abt this particular point.....

It can be arguments fr both 

bt looking to it AV should be 14000