Customs, Excise and Gold Tribunal - Bangalore
St Vincent Industrials vs Commissioner Of Central Excise And ... on 7 June, 2001
ORDER
Shri G.A. Brahma Deva, (J)
1. The short point to be considered in this appeal is whether notional interest on advances is to be included or not in determining the assessable value. Shri P. Damodaran, learned counsel appearing for the appellant submitted that issue involved herein has been covered by the decision of the Supreme Court in the case of VST Industries Vs CCE Hyderabad (1998(97) ELT 395 SC).
2. On the other hand Smt Radha Arun appearing for the Revenue submitted that there is a nexus between the interest on advances and the assessable value in the instant case as they are selling only to the buyers who pay advances. Since they are taking compulsory advance from the buyers, there is a nexus between the interest and the price., She has also relied on the decision of the Supreme Court in the case of Metal Box reported in 1995 (75) ELT 445.
3. We have carefully considered the matter. We find that no sufficient evidence has been placed on record by the Revenue to establish that there is a nexus between the interest on advances and the price. We take note of the fact that CBEC has issued a Circular No. 404/37/98 in what context the interest is to be added. Since the issue involved herein has already been considered by the Supreme court in the case of VST industries (supra), following the same we accept the appeal and accordingly appeal is allowed with consequential relief.
(Pronounced and dictated in open court)