Escorts Limited And Anr vs Collector Of Central Excise, ...

The Supreme Court addressed the deductibility of a differential discount between stockists and sub-stockists in the context of excise duty valuation under Section 4 of the Central Excise Act, 1944. The Court held that the differential discount of 2.5% passed on to stockists is not deductible when assessing the excisable value of goods sold to sub-stockists. The Tribunal's decision to disallow the deduction was upheld, affirming that the normal price for excise duty purposes must reflect the actual transaction price without additional discounts.