2005 (4) TMI 74 - SCH - Central Excise

Valuation (Central Excise) - whether the interest accrued on advances taken from the customers is to be included in the value of the goods supplied? - Held that - there is no proof that taking of the advances had any influence in reducing the price or that the advances taken were used as a working capital. This case is, therefore, covered by the ratio laid down by this Court in the case of Metal Box India Ltd. v. Collector of Central Excise, Madras reported in 1995 (1) TMI 380 - SUPREME COURT - Decided against Revenue.

Summary

The Supreme Court dismissed the appeals against the Customs, Excise and Gold (Control) Appellate Tribunal's judgment. The court ruled that interest accrued on advances from customers should not be included in the value of goods supplied, as there was no proof that the advances influenced price reduction or were used as working capital. The decision was based on the precedent set in Metal Box India Ltd. v. Collector of Central Excise, Madras.