Customs, Excise and Gold Tribunal - Bangalore
Cce, Bangalore vs M/S. Jindal Aluminium Ltd. on 22 March, 2001
Equivalent citations: 2001(75)ECC606, 2001(133)ELT641(TRI-BANG)
ORDER
Shri S.S.Sekhon
1. The issue in this appeal filed by the revenue is about the eligibility deductions of interest, on delayed payments as arrived at by the Commissioner (Appeals).
2. We have heard learned SDR for the Department who has brought to our attention that the issue involved was the inclusion of additional collections on account of interest on delayed payments. Whereas under the impugned order the Commissioner (Appeals) has permitted deductions on the same from the assessable value's declared by the respondents. She fairly conceeded that the issue on interest on delayed payments was fully covered by the decision of Supreme Court in GOI Vs. Madras Rubber Factory Ltd., reported in 1995 (77) ELT 433 SC at para 66 therein. Therefore, there was no contest as regards the ineligibility for inclusion of interest on delayed payments on the assessable values.However, this decision does not permit the deductions from assessable values, if Assessable value's are credit sales and not including such interest.
3. Learned Shri.Narahari, consultant, for the respondents submitted that the Sales made out at the factory gate, are credit sales and interest is collected only in few cases and not in all cases.
4. We have considered the submissions and find, that the interest on delayed payments, cannot be added to the Assessable value to be determined under Section 4 of the Central Excise Act, 1944, On credit sets made at the factory gate, from the date of delivery of the goods till the realisation of price thereof. This was laid down by the decision of the GOI Vs. Madras Rubber Factory Ltd., (supra). Following the same we would set aside this order of the Commissioner (Appeals) and direct that no additions on account of interest on delayed payments could be made to the assessable value, if the same are credit sales We clarify that the directions of the Supreme Court in Para 66 of GOI Vs. Madras Rubber Factory Ltd., valuation is to be followed and assemble values determined in terms of this Order of Supreme Court. The Commissioner (Appeals) order required to be modified to this effect.
5. Appeal disposed of in the above terms.
(Pronounced and dictated in the Open Court)