1993 (6) TMI 183 - AT - Central Excise

Summary

Issues:
1. Whether financial charges on delayed payments form part of assessable value.
2. Whether discount of Rs. 80/- per M.T. collected by the appellant is permissible.
3. Whether duty demand without approving the price list is sustainable.

Analysis:

1. The appellant charged Rs. 80/- per M.T. as financial charges on delayed payments for white cement sales. The advocate argued that this charge was for credit sales, and a change to 2% of value was made in 1991. Sales data showed varying collection patterns. The advocate relied on established factory gate prices to support the appellant's case, citing relevant legal precedents.

2. The lower appellate authority found the appellant's pricing declaration unusual and disallowed the Rs. 80/- per M.T. discount, deeming it impermissible. The authority noted inconsistencies in the appellant's stance and lack of buyer notice on the discount. The authority emphasized that the appellant cannot exclude collected value elements without proper approval.

3. The Tribunal considered both sides' arguments. Despite the unusual pricing pattern, the appellant was entitled to interest on delayed payments unless proven otherwise. The suspicion over the collection method did not warrant duty imposition, as lower authorities recognized it as payment delay charges. The reference to a Rajasthan High Court decision supported the appellant's case, leading to the allowance of the appeals on this issue.

4. In a minor issue, the appellant contested a duty demand related to a supply contract. The appellant argued that the demand was premature due to the unapproved price list. The Tribunal agreed, remanding the matter for further adjudication considering the appellant's responses to the Assistant Collector's objections.

5. The appeals were disposed of with the first issue favoring the appellant due to the nature of the financial charges, the second issue remanded for further consideration, and the third issue upheld for remand based on the unapproved price list affecting the duty demand.