Venus Bakery Products Ltd. is doing business of manufacturing and selling of different types of Cakes, Pastries, Biscuits, Cookies and other bakery products through a network of dealers. The bakery sells the goods to the

Facts of the case: In the given case Venus Bakery Products sold the goods after discount to the dealers. Later on supplier has given additional discount as an incentive to push sales of unsold stocks left with the dealers. Issue: Whether additional discount given by the supplier as an incentive after supply of goods is deductible from the transaction value. Legal provisions: As per section 15(3) any discount is deductible after supply, if following conditions are satisfied: Such discount is established in terms of agreement entered into at or before the time of supply. Such discounts are linked to the relevant invoices. ITC proportionate to such discount is reversed by the recipient. Conclusion: In the given case, Venus Bakery Products has given additional discount after supply of goods which was not agreed at the time of supply. Hence, deduction of such additional discount is not available.