2001 (5) TMI 118 - AT - Central Excise

Summary

The Appellate Tribunal CEGAT, Mumbai considered whether notional interest on advance payments should be added to the assessable value of goods. The Tribunal ruled that advance payments do not constitute additional consideration and must be part of the price. The Tribunal emphasized the need to establish a nexus between the advance and a reduction in price. As the required nexus was not shown, notional interest was not includable in the assessable value. The appeals were allowed, and the impugned orders were set aside.