Appellants have vehemently submitted that the
commitment charges are in nature of interest charges or
the damage charges made by them from their customer/
client ... drawn in respect of interest
11 ST/233/2010
charges and the commitment charges. Interest charges
are in respect of the amount availed or drawn
specific provisions contained under Section 36(1)(iii) , interest and commitment charges incurred by the assessee for the purposes of business are liable as revenue ... interest. The disallowance has been sustained on the ground that COFACE charges paid on foreign currency loan are in the nature of interest and commitment
enforcing the commitment charges.
(5) In any event, the computation of commitment charges and the date from which the commitment charges and interest is demanded ... communicated its final orders in respect of commitment charges and accordingly the commitment charges are to be recovered in the following manner :
(I) -- (a) Power supply
rate of interest claimed was not permissible arid the petitioner was not entitled to claim compound interest nor any commitment charges in view ... said term loan of Rs. 15,00,000 together with interest, commitment charges, costs, expenses and all other monies payable by respondent
Anand Rathi vs Securities And Exchange Board Of India on 28 February, 2002
ORDER
1
before the District Judge claiming
the entire outstanding loan, interest and commitment
charges. The appellants having admitted the claim of the
Corporation, an order ... that in view of the default, the
entire outstanding loan, interest and commitment charges
amounting to Rs.6,73,390.42 paise had become
foreign company had
charged interest, commitment charges and insurance charges
payable by the assessee. The said "commitment charges" was
upfront payment. We have ... COFACE on foreign currency loan was in the nature of
interest and commitment charges and since the charges have
been paid in relation
follows:
Particulars Amounts/Rs.
1. Testing Charges 51,021
2. Interest/Commitment Charges 7,39,019
3. Bank Commission
interest" means interest on loans and
advances made in India and includes-
(a) commitment charges on unutilised portion of
any credit sanctioned for being ... defines the word "interest" to mean
interest on "loans and advances including commitment charges,
discount on promissory notes and bills of exchange
interest charges incurred during the period of construction, it is stated as follows :
"There is no doubt that interest charges and commitment fees incurred ... case of Challapalli Sugars Ltd. v. CIT . With regard to interest charges and commitment fees on loans taken specifically and exclusively for the purpose
