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TMI Blog2000 (12) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacturer as well as Shri S.P. Sahu (the second appellant) who is the Director of the appellant/manufacturer. As both the appeals are directed against the same order, we consider it convenient to consider both the appeals together. Accordingly, this common order disposes of both the appeals. 2. The dispute is in regard to valuation of PVC corgated pipes manufactured by the assessee and supplied for Rajasthan Agricultural Drainage Project (RAJAD). The project itself was for reducing solidity of soil in certain parts of Rajasthan. This project was funded by Canadian International Development Agency. In terms of the Canadian assistance agreement to which Government of Rajasthan and Government of India were parties, the Canadian Internat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly the sale price of the goods. In the circumstances the price charged by the party from RAJAD cannot be normal price on account of extraneous reason, namely at zero rate of interest by not adding notional interest on advances the party had depressed the value of goods. Accordingly notional value of interest has rightly been loaded in the assessable value Central Excise duty has been appropriately demanded is recoverable from the party. The same view was held by the Hon ble Apex Court in the case of Metal box India Ltd. v. CCE, Madras in Civil Appeal No. 215-16 of 1989 decided on 10-1-1995 [1995 (75) E.L.T. 449 (S.C.)]. 4. It is made clear by the aforesaid portion of the Order-in-Original that the Revenue s contention is that a notion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting an investigation by the Central Excise Authorities as to how the manufacturer raised his capital and whether those terms were concessional or not. That the party would have been required to borrow the amounts from Banks/financial institutions for purchase of machines and interest would have been payable in the event of such financing is also altogether irrelevant for assessment of the goods. In any event, since the loan is not from the buyer it has no nexus with the price fixed. The appellants have also submitted that there are several factors affecting businesses like subsidies by Governmental and other authorities. However, such benefits are not to be added to the price of the goods for fixing assessable value. 6. With regard to di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cost of the free capital is to be made to the price to make it a normal commercial price. 8. The demand in the present case is purely on the ground that had it not been for the Canadian assistance the party would have been required to borrow this amount from Banks/financial institutions etc. for purchase of the machines and interests payable would have enriched the cost of manufacture and consequential sale price of the goods . We are unable to find a legal basis for such a ground. Projects raise finance in several ways. Some purely commercial while others may be at concessional rates. There is no provision in the Central Excise Act or in the Rules permitting a scrutiny of the financing of a project as to see whether the same has be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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