2014 (1) TMI 575 - AT - Central Excise

Rectification of Order Held that - There was two factual errors pointed out by the appellant in Final Order - interest on receivables was held to be includible in the assessable value of the goods - Following Government of India Vs. Madras Rubber Factory 1995 (5) TMI 28 - SUPREME COURT OF INDIA - Final Order was in favour of the department, the same was accepted - the question of the department filing an appeal against the said Final Order did not arise - the second sentence of para 3 need to be rectified - the conclusion recorded in para 4 of Final Order in favour of the respondent cannot be rectified.

Summary

Issues:
1. Correction of factual errors in Final Order No. 655/2012 regarding Final Order No. 785 to 786/2007.
2. Whether interest on receivables should be included in the assessable value of goods.
3. Applicability of judgments by the Hon'ble Supreme Court in similar cases.

Analysis:
1. The department filed an application pointing out factual errors in Final Order No. 655/2012 related to Final Order No. 785 to 786/2007. The Additional Commissioner (AR) highlighted that the statement in para 3 of Final Order No. 655/2012 contradicted the findings of Final Order No. 785 to 786/2007, where interest on receivables was held to be part of the assessable value of goods. The department accepted Final Order No. 785 to 786/2007, so modifications were sought in the Final Order. The Tribunal acknowledged the errors and made necessary corrections to para 3 and concluded that the decision in favor of the respondent could not be altered.

2. The respondent's counsel argued that the department did not contest the inclusion of interest in the price of goods in the present case, unlike in Final Order No. 785 to 786/2007. The department's grounds of appeal acknowledged the presence of interest in the price of goods, which was not disputed. The Tribunal considered these submissions and found that interest on receivables was indeed included in the sale price of the goods, applying the ratio of judgments by the Hon'ble Supreme Court in similar cases.

3. The Tribunal substituted a paragraph in Final Order No. 655/2012 to reflect the correct position regarding the inclusion of interest on receivables in the assessable value of goods. Additionally, a change was made in para 4 of the Final Order to replace the term "case law" with "decisions of the apex court." The Tribunal disposed of the ROM application filed by the appellant, confirming the amendments made to Final Order No. 655/2012 in Appeal No. 671/2004.

This detailed analysis addresses the correction of factual errors, the inclusion of interest on receivables in the assessable value of goods, and the application of judgments by the Hon'ble Supreme Court in the Tribunal's decision-making process.