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TMI Blog2002 (2) TMI 1267X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that capital goods in parts thereof manufactured by assessee are tailor made pieces against specific orders placed by their customers and in the absence of comparable price not vitiated by extra considerations, assessee's contention that the interest accruing on deposit has not vitiated the price is not proved. They have further submitted that the money does not come free in the market. In no business is money kept idle either. Therefore, when the fact of interest free deposit is proved the considerations accruing to the persons receiving the deposit is proved ipso facto and at this stage itself the burden shifts to the assessee to prove that the extra consideration accruing from the buyer of the goods has not influenced the price. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons mentioned supra, he submitted that the impugned Orders-in-Appeal as mentioned above may be set aside and Revenue appeals be allowed. 4. Shri J. Shankarraman, ld. Counsel appears for respondent assessee M/s. Lakshmi Precision Tools Limited and Shri Muthuvenkatraman, ld. Counsel appeared for M/s. IAEC Industries Limited and none appeared for rest of the respondents. The ld. Counsels submitted that the learned Commissioner of Central Excise (Appeals), Trichy and Chennai had allowed the appeals for the reason that there was no nexus between the price and the advances. In this connection, they have relied on the decision of this Bench decision in CCE, Coimbatore v. Allied Engineering Industry vide our final order No. 1212/2001 dated 25 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held in paras 5 to 7 as follows : "5. The appellants have claimed that the advance received was only a very small percentage of the contracted price and part payment of final price and was meant only as a security deposit to avoid any loss in the event of cancellation of orders and does not contribute to the working capital. They have also submitted that the items produced by them are tailor made items as per specific requirements of the customers and the contracts finalised as per the tender documents and that the advance is taken as a notional guarantee so that they could proceed in the matter without any apprehension of the withdrawal of orders at any intermediate stage. They have also stated that the advances cannot be equated bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved benefit by receipt of such advance, particularly in the absence of quantification thereof. So the impugned orders do not survive in law in the light of the judicial pronouncements as above and the demands confirmed have to be set aside. In respect of other appeals also the respective appellate authority has recorded his finding in paras 5 and 6 of the order impugned as below :- 5. The respondents in their reply to show cause notice had pleaded that the advances were received as deposits for supply of the goods; that the advance amount has been adjusted with the price of the goods cleared; that there is no other consideration and the price was the sole consideration and that the department has not established that there is additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 8-1-98 in the case of VST Ind. Ltd. v. CCE, Hyderabad [1998 (97) E.L.T. 395 (S.C.) = 1998 (74) ECR 486 (S.C.)] and the Board have clarified that the nexus between the advance received and the price should be proved, if notional interest is to be added to the assessable value. In the present case there is no such allegation by the department nor any quantification of the benefit of the interest free advance has been done. The case laws as above are all in the appellants' favour. Further, the department has not brought forth any evidence to prove nexus between the advance and the price charged. In view of the above, I do not find any reason to interfere with the impugned order, which is sustainable in law. The departmental appeal is there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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