2007 (8) TMI 783 - AT - Central Excise

Summary

Issues involved: The deduction claimed by the appellants from the price on account of 'interest receivables'.

Summary:
The issue revolved around the deduction claimed by the appellants for 'interest receivables' from the price list, which was denied by the lower authorities citing lack of evidence and passing on the deduction to all buyers. The appellant argued that the interest on receivables was initially charged but subsequently claimed as deductions based on a CA certificate. The Tribunal found that the appellants had produced the CA certificate for the earlier financial year while claiming the deduction for the subsequent year, which supported their claim. The Tribunal referred to previous judgments, including the case of Novapan Industries Ltd., where it was held that interest on receivables is an allowable deduction from the price list. The Tribunal noted that the issue was settled in favor of the appellants based on the Supreme Court's dismissal of the revenue's appeal in a similar case.

Regarding a point raised by the Jt. CDR about the appellant not appealing against a previous judgment, the Tribunal clarified that the earlier decision was based on a Circular not applicable to the relevant period and a Larger Bench decision that had been overruled by the Supreme Court in a different case. The Tribunal emphasized that the law prevailing at the time of the current appeal, as established by the Supreme Court in relevant cases, should be applied. Consequently, the Tribunal ruled in favor of the appellants, allowing the appeals and providing consequential relief, if any, based on the judgments of the Supreme Court in A. Infrastructure Ltd. and Novapan Industries Ltd.