9911796707
TMI Blog2003 (12) TMI 359X X X X Extracts X X X X X X X X Extracts X X X X ..... President]. In this appeal at the instance of the assessee the issue arising for consideration is whether the amount collected by the assessee as post-removal expenses (PRE) from their buyers for delayed payment is liable to be added to the assessable value. 2. The assessee is manufacturing various grades and kinds of nylon cord fabric. The period involved in these proceedings is 12-9-199 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. If the buyers make payment before the expiry of the credit period, PRE is refunded back to the buyers. While so, show cause notice dated 21-10-2002 was issued to the appellant demanding duty on PRE. Even though the appellant filed reply to the show cause notice, the Commissioner was inclined to confirm the duty demand and impose a penalty of equal amount. 3. Commissioner took the view that P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee that all their customers were made known about the nature of PRE, cannot be accepted. 4. It is contended on behalf of the appellants that the Commissioner has erred in rejecting the appellants claim that PRE is interest on receivable. Learned Counsel points out that it is irrelevant as to under which head PRE is accounted. In order to appreciate its character, the appellants referre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the buyers. No material is placed by the Revenue before us to show that the above statement is factually incorrect. Apart from the above, Revenue has not been able to bring forth even one transaction where PRE had been collected by the appellants when the sale amount was received on the date of sale. Even though the appellant sought an opportunity to cross-examine General Manager (Materials) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not take the stand that interest on receivable is not liable to be excluded from the assessable value. According to him, PRE collected by the appellants is not in the nature of interest on receivable. Learned Counsel for the assessee pointed out that in appellants own case the Commissioner of Central Excise (Appeals), Chennai in his order dated 12-4-2000 has treated similar amounts received by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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