Commissioner Of Central Excise, Madras vs Hindustan Lever Ltd.

The Supreme Court addressed the issue of quantity discounts and free units in the context of taxation. It held that quantity discounts, which are agreed upon at the time of transaction, qualify as trade discounts and should be allowed. However, the court found insufficient evidence regarding the provision of free units as replacements for damaged stock, necessitating a remand to the assessing authority for further examination. The Tribunal's order concerning free units was set aside, while the appeals regarding quantity discounts were upheld.