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TMI Blog2005 (9) TMI 466X X X X Extracts X X X X X X X X Extracts X X X X ..... ,475/- against M/s. Uttam Steels Ltd. along with imposition of personal penalty of identical amount under the provisions of Rule 173Q read with Section 11AC of Central Excise Act. In addition personal penalty of Rs. 50,000/- has been imposed on Shri V.R. Bhayana, Director, of Rs. 25,000/- on Shri N.S. Money, Controller of Accounts and of Rs. 10,000/- on Shri S.K. Mighlam under Rule 209A of Central Excise Rules. 2. Appellant, M/s Uttam Steels is engaged in the manufacture of CR Coils and Galvanized Corrugated sheets falling under chapter 72 of the Central Excise Tariff Act. Demand has been raised and confirmed against the said appellant on two counts. Amount of Rs. 24.42 lakhs has been confirmed on excess recovery of interest on delaye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ually paid to the transporter, it is argued that such differential amount will not form part of assessable value as the same is profit on account of transport activity and there is no evidence that the same forms part of consideration towards value of the sold goods. Reliance was placed upon the Hon'ble Supreme Court's decision in the case of Baroda Electrical Meters, 1997 (94) E.L.T. 13. 6. The Departmental Representative appearing for the revenue reiterated the reasoning of the Commissioner. He contended that excess recovery in the shape of interest on receivables is nothing but additional consideration and has to be included in the assessable value. The earlier Orders passed by the Commissioner holding that such recoveries are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od of collection of interest on delayed payments was adopted by the notices, they cannot, be denied the benefit of the interest on delayed payments, because it was an interest clearly realized subsequent to sale Paragraph 30 of the order made as under :- "In view of the above discussions, I am of the view that the interest so collected on delayed payment by the notices clearly falls within the meaning of "Interest on Receivables", a permissible dedication from the assessable value as held by the Hon'ble Supreme Court in the MRF case as referred supra and rightly relied upon by the earlier adjudicating authorities in their respective order-in-Appeal referred supra. However, I find that the cost auditor found out that in the year 1994-95 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to understand that in the light of his own findings that the price of the goods in case of cash sales as also credit sales is the same, how can the commissioner increase the assessable value in case of credit sales by adding interest in the same. Once, it is held that the price to the customer at the time of sale, whether against cash or on credit is the same and the fact that sale is on credit is not influencing the price, the recovered interest, may be in excess to what was being paid to banks, cannot be held to form a part of consideration towards value of the goods. As such we are of the view that demand of duty on this ground is not sustainable. 8. Apart from the fact that excess interest on receivables is not to be added in as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ;As regard the second issue of deduction of transportation charges from the assessable value, Commissioner has held that the deduction claimed by the appellant was higher than the actual freight expenses incurred by them. He has also observed that transportation from their Khopoli plant to Taloja plant have been claimed as deduction from the assessable value. He has distinguished the Hon'ble Supreme Court in the case of Borada Electric Meter Ltd. v. Commissioner, 1997 (94) E.L.T. 13 (S.C.) on the ground that the issue before the Hon'ble Supreme Court was in respect of profit earned by realizing excess amount of transport charge than what was actually claimed as deduction from the assessable value, where as in the present case it is higher d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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