Customs, Excise and Gold Tribunal - Mumbai
Premier Automobiles Ltd. vs Commissioner Of Customs And Central ... on 17 October, 2003
ORDER Jyoti Balasundaram, Member (J)
1. The above appeals arise out of the order of the Commissioner of Central Excise (Appeals), Pune upholding the order-in-original of the Assistant Commissioner, who had adjudicated 10 show cause notices raising a total demand of Rs. 17,90,010,37 confirming the demands raised under several notices. The issue in dispute is whether notional interest on advances taken by the appellants from all their buyers for whom the goods are specially made according to specifications, is required to be included in the assessable value of machine tools manufactured and cleared by the appellants. The period in dispute ranges from September, 1992 to February, 1996 (details of the show cause notices are to be found in the annexure to this order).
2. We have heard both sides. We find that although the authorities below have held that there is a nexus between the taking of the advances and the price of the goods, there is no material on record to establish that the price of the goods has been depressed as a result of acceptance of interest free advances. Therefore applying the ratio of the apex Court decision in the case of Commissioner of Central Excise, Mumbai v. I.S.P.L Industries Ltd. 2003 (154) ELT 3 (SC) holding that no presumption can be drawn from mere fact of interest free advances by buyer to manufacturer and that the burden to prove that such advance has influenced the price of the goods lies upon the Revenue, and this burden has not been discharged by the Revenue in the present case, we set aside the impugned order and allow the appeals with consequential relief due in accordance with law.
ANNEXURE DETAILS OF SHOW CAUSE NOTICES S. No. SCN No. & Date Period Total duty amount involved From To
1. PRIII/PAL/SCN/93/78 dated 20/01/1993 26/09/1992 31/12/1992 1,23,069.00
2. PRIII/PAL/SCN/93/62 3 dated 29/06/1993 01/01/1993 31/05/1993 2,40,000.37
3. PRIII/PAL/SCN/93/1 1 7 dated 10/12/1993 01/07/1993 30/11/1993 8,994.00
4. PRIII/PAL/SCN/94/55 3 dated 06/06/1994 01/12/1993 31/04/1994 6,43,774.00
5. PRIII/PAL/SCN/94/12 58 dated 17/1 1/1994 01/05/1994 31/10/1994 1,46,673.00
6. PRIII/PAL/SeN/94/1 8 1 dated 29/05/1995 November, 1994 645.00
7. PRIII/PAL/SCN/94/20 0 dated 08/06/1 995 Dec. 1994 April, 1995 65,213.00
8. PRIII/PAL/SCN/93/63 4 dated 18/09/1995
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31,020.00
9. PRIIJ7PAL/SCN/94/J8 53 dated 20/1 1/1995 May, 1995 Oct., 1995 3,09,522.00
10. PRIII/PAL/SCN/95/ dated 23/04/J 996 Nov., 1995 Feb., 1996 2,21,100.00 17,90,010.37