Syed Shah Mohammed Quadri, J. - (1.) These appeals, by the assessees (M/s Escorts Limited and M/s Goetze (India) Limited), are from the order of the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi in Appeal Nos. 421-454 of 1993 dated August 30, 1993.
(2.) The short point that arises for consideration is whether the differential discount between stockists discount and sub-stockists discount passed on to the stockists by the assessee, is deductible in assessing the excisable value of the goods sold to the sub-stockists
(3.) The assessees manufacture parts and accessories of motor vehicles, tractors, trailors and other stationary/diesel engines. The goods in question are tractors. During the relevant period, out of the tractors manufactured by the assessees, sixty per cent were sold to their stockists at 27.5 per cent discount and forty per cent were sold to their sub-stockists at twenty five per cent discount. The differential discount of 2.5 per cent, was passed on to the stockists by the assessees. It is the deductibility of that amount, in arriving at the excisable value of the tractors sold to the sub-stockists, that is in question in these appeals. The Assistant Collector, Central Excise, initiated the proceedings by issuing a showcause notice as to why the differential discount should not be disallowed. He eventually disallowed deduction of the differential discount. On appeal, by the assessees, the Collector (Appeals) in some cases took the view that the differential discount was an allowable deduction but in other appeals, he came to a different conclusion. Against those orders, both the assessees as well as the Revenue filed appeals before the Customs, Excise and Gold (Control) Appellate Tribunal (for short, the Tribunal). By the orders impugned in these appeals, the Tribunal upheld the orders of the Collector (Appeals) declining to permit deduction of the differential discount and set aside the orders of the Collector (Appeals) permitting the deduction of the differential discount. Thus, the assessees are in appeal before this Court.;