Case Law Analysis
|Custom, Excise & Service Tax Tribunal
Central Excise Valuation | Trade Discounts Without Indirect Consideration Cannot Be Added to Assessable Value : CESTAT Mumbai
CESTAT Mumbai rules that trade discounts extended to bulk buyers like NMMT cannot be treated as 'additional consideration' for excise valuation unless there is evidence of indirect benefit flowing from the buyer to the seller. The ruling clarifies that Rule 6 of the Central Excise Valuation Rules requires tangible proof of consideration beyond mere discounts to adjust assessable value, offering relief to suppliers in similar arrangements.