Customs, Excise and Gold Tribunal - Bangalore
M/S. Carbon & Chemicals India Ltd. vs Commissioner Of Central Excise, Cochin on 19 April, 2001
Equivalent citations: 2001(76)ECC529, 2001(132)ELT301(TRI-BANG)
ORDER
Shri. G.A. Brahma Deva
1. The short point to be considered in this case is whether interest on advances received from Commission Agents is to be added in determining the Assessable value. The appellants manufactured carbon black falling under Sub Hearing 2803 of Central Excise Tariff. They sell their products to the wholesale dealer as well as to the Industrial Consumers. Sales to Industrial Consumers are directly from the factory. But to wholesale it is through Commission Agents. It appears that the appellants take deposits from the Commission Agents who act in between the appellants and the wholesale dealers in collecting the sale proceeds. The appellants used to pay interest at the rate of 12% per annum to the depositers. There is nothing on record to show that there was flow of additional consideration from the buyers. Commission Agents in the instant case is not a buyer, hence payment of interest from him cannot be added to the Assessable value. It was brought to our notice that the Supreme Court has taken a view in the case of VST Industries reported in 1998 (97) ELT 395 that notional interest case the receipt of interest is not even from the customer and no nexus has been established to show that interest (sic) the sale price. In the facts and circumstances we accept the contention of the party and accordingly appeal is allowed with consequential relief if any.
(Pronounced and dictated in the Open Court)