Customs, Excise and Gold Tribunal - Delhi
Cce vs Talbros Automotive Components Ltd. on 2 September, 1998
Equivalent citations: 1999(82)ECR801(TRI.-DELHI), 1999(111)ELT640(TRI-DEL)
ORDER
U.L. Bhat, J. (President)
1. Respondent, engaged in the manufacture of Gaskets for motor vehicles, had credit sales in respect of which buyers drew hundies which were presented to the banker who made the payment to the respondent. Banker would later on recover the amount from the buyers charging also interest from the date of discounting of the hundies to the date of receiving payment from the buyer. Interest for normal credit period of 45 days was being borne by the respondent. Where the buyers requested for extension of the credit period, they were required to bear the interest for the extended period. This interest was initially paid by the respondent who subsequently recovered the same from the buyers. The dispute in this case arose on a demand sought to be made by the department for differential duty on the element of interest for the extended period. Additional Collector dropped the demand holding that such interest would not be part of assessable value. Department being aggrieved has filed this appeal.
2. That interest on receivables would not be part of assessable value is clear from the decision in MRF Ltd. 1995 (77) ELT 433 (SC) : 1995 (58) ECR 385 (SC). In this view we find no ground to interfere and accordingly dismiss the appeal.