9911796707
TMI Blog1993 (6) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... a) is contested. Other issues are conceded by him. Therefore, the disputed issue before the Tribunal in these two appeals is as follows :- (a) Whether a sum of Rs. 80/- per M.T. collected as financial charges or interest on delayed payments in respect of sales at factory gate as well as depots at the very beginning from 7-4-1988 will form part of the assessable value. 1.1 Learned advocate has further submitted that Rs. 80/- per M.T. of white cement manufactured by the appellant and charged by the appellant was in respect of those sales only where a customer did not make the cash payment and he sought credit facility upto 30 days. After 30 days an additional interest at the rate of 18% was charged by the appellant. He further submits t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mers at the factory gate. Similarly, in respect of sales from depots financial charges were collected from 280 customers constituting about 47.22% of the total customers while financial charges were collected from 313 customers constituting about 52.78%. 1.3 On the basis of the above factual data, learned advocate has submitted that factory gate price against cash payment is fully established inasmuch as 28.06% of total sales at the factory are without collecting the financial charges. He, therefore, submits that once the factory gate wholesale cash price is established the department is not required to go into any other price. He relies on (i) 1992 (59) E.L.T. 260 - Para 2 [DCM Shriram Consolidated Ltd. v. UOI] and (ii) 1992 (59) E.L.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charges or as interest on delayed payment by the appellant. 3. We have carefully considered the pleas advanced on both sides. Method of declaration of the price by the assessee is no doubt somewhat unusual inasmuch as normally a normal price is declared by an assessee and then discounts are claimed as deductions therefrom. However, merely because an unusual pattern of declaration of price has been adopted by the appellant, he cannot be denied the benefit of interest on delayed payments because the lower authorities have not found that these extra charges collected by the appellant at a flat rate of Rs. 80/- per M.T. are anything else but interest on delayed payment. Similarly, there may be a suspicion regarding the nature of collection in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit if the payment is made after one month of the delivery, Rs. 100/- per unit will be price of goods if the extra charge of Rs. 2/- per unit, is identifiable as being relatable to the time lag in payment ." Accordingly, the appeals are allowed on this issue with consequential relief to the appellant. 4. There is another minor issue in Appeal No. 4715/92-A. Learned advocate submits that this is set out at Ground (Q) of the said appeal :- (Q) In the case of the duty demand of Rs. 12,081.30 raised in the first show cause notice, a sum of Rs. 4,913.30 pertains to supply made by the appellants against contract with M/s. Prakash Colour and Chemicals Ltd. The objections raised by the Assistant Collector in his letter dated 21-1-1991 were ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
