9911796707
TMI Blog2005 (9) TMI 436X X X X Extracts X X X X X X X X Extracts X X X X ..... The reason for the demand is that the respondents collected the duty on freight and interest on receivables. The Assistant Commissioner has not accepted the repayment of duty collected on freight and interest on receivables by way of issuing credit note to the customers. However, the respondents were successful before the Commissioner (Appeals). The Commissioner (Appeals) allowed the respondents' appeal on merits. Aggrieved over the Commissioner (Appeals)'s order the Revenue come to the Tribunal for relief on the following grounds :- (i) The CESTAT in the case of CCE v. Addison & Co. [1997 (93) E.L.T. 429 (Tribunal) = 1997 (20) RLT 479] has held that once the assessee has passed on the duty burden at the time of clearance of the goods, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Hon'ble Supreme Court's judgment in the case of MRF. 3. Smt. R. Bhagya Devi, ld. SDR appeared for the Revenue and Shri T. Ramesh, ld. Counsel for the respondents. 4. Ld. Counsel made the following submissions :- (a) It has been erroneously stated that in the grounds of appeal at para 3 that in order to get the refund claim of excess duty paid on account of freight and interest, the respondents have returned back the duty collected earlier. The issue involved in the present case is not relating to refund of excess duty paid on freight and interest but relating to as to whether, the demand of central excise duty by disallowing the permissible deduction viz., freight, interest and cash discount from the assessable value at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y) is that where the goods are sold to up-country wholesale buyers and payments are received quite sometime later, it is indeed a case of sale on credit and, therefore, the interest charged from the date of delivery of goods till the date of realisation of the price thereof, should be deducted from the value of the goods. The interest charged, it is submitted, is only in lieu of the time taken in making the payment by the up-country wholesale buyer. Since this is the amount received subsequently to the sale from the depots and does not fall' within the ambit of any of the expenses held includible in Bombay Tyre International, it is clearly excludible. The claim for this deduction is, therefore, allowed." (c) The case of Addison & Co. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time of finalisation of provisional assessment, permissible deductions should not have been taken into account. We are also in agreement with the respondents that the various cases and the Central Excise law allow deduction from the assessable value on account of freight and interest on receivables. Para 66 of the MRF judgment supports the respondents' contention. Applying the Addison & Co. decision is not correct. In the present case the question is eligibility of certain deductions while finalising the provisional assessment. When there is evidence that the respondents had paid excess duty on account of certain elements which should not be included in the assessable value and when there is evidence that such excess duty had been returned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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