ESCORTS LTD. vs COLLECTOR OF CENTRAL EXCISE, CHANDIGARH

The Supreme Court addressed the deductibility of differential discounts under Section 4 of the Central Excise Act, 1944, in the context of excise duty valuation. The Court held that the differential discount of 2.5% between stockists and sub-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 such discounts do not constitute a trade discount under the Act.