1999 (11) TMI 900 - AT - Central Excise

Summary

Issues:
1. Denial of deduction of interest on Sundry Debtors
2. Claim for deduction of purchase tax
3. Recomputation of duty payable

Issue 1: Denial of deduction of interest on Sundry Debtors:
The appeal concerns the denial of deduction of interest on Sundry Debtors for a specific period. The appellants argue that the interest on sundry debtors should be deductible from the price to determine the assessable value, citing previous judgments of the Hon'ble Apex Court. They assert that the interest cost on sundry debtors, even when in-built in the price, should be considered for deduction. The Ld. Commissioner (Appeals) erred in categorizing this in-built cost as an abatement, contrary to the Apex Court's decisions. The appellants seek a remand to the original authority for recomputation of the duty payable after adjusting the amounts already paid. The Tribunal finds merit in the argument and sets aside the decision on interest receivables, remanding the matter for reconsideration.

Issue 2: Claim for deduction of purchase tax:
The appellants choose not to press their claim for deduction of purchase tax, focusing solely on the interest on sundry debtors issue. As a result, the Tribunal does not address this claim in its analysis.

Issue 3: Recomputation of duty payable:
The appellants request a remand to the original authority for recomputation of the duty payable, considering the admissibility of deduction for interest on receivables. They argue that if this deduction is allowed, they would be entitled to a refund. The Tribunal agrees with this argument, waives the duty deposit, and stays the recovery of the amount. The Order-in-Appeal is modified to set aside the decision on interest receivables and remand the matter for reconsideration, along with a directive to recompute the net duty payable based on the revised decision.

In conclusion, the judgment addresses the denial of deduction of interest on Sundry Debtors, the claim for deduction of purchase tax, and the recomputation of duty payable. The Tribunal finds in favor of the appellants regarding the interest on sundry debtors issue, remanding the matter for further consideration by the original authority.