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Commissioner Of Central Excise, ... vs Hindustan Lever Ltd.

Supreme Court Of India|04 April, 2002

JUDGMENT / ORDER

1. The appeals are pressed by the Revenue only insofar as they relate to quantity discount and free units.
2. Quantity discount, to put it simply, works thus: a dealer receives from the assessee a stated extra quantity if he buys a certain other quantity. That this will happen is known and agreed at the time the transaction is entered into. It is, therefore, a trade discount and the authorities below have correctly allowed it as such.
3. Insofar as free units are concerned, it seems to us that the factual position needs to be ascertained.
4. How and when free units are given by the assessee to authorised dealers as replacements for damaged stock has not been sufficiently explained. It is, therefore, necessary to remand the matter to the assessing authority in this regard and give liberty to the assessee and the Revenue to place before it further evidence. To effectuate this, the order of the Tribunal, to the extent that it relates to free units, needs to be set aside.
5. Order on the appeals accordingly.
6. No order as to costs.
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Title

Commissioner Of Central Excise, ... vs Hindustan Lever Ltd.

Court

Supreme Court Of India

JudgmentDate
04 April, 2002
Judges
  • S Bharucha
  • N S Hegde
  • D Dharmadhikari