9911796707
TMI Blog2008 (8) TMI 672X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to be paid - the order of the Assistant Commissioner restored. - E/1420/2003-Mum - A/696/2008-WZB/C-II/(EB) - Dated:- 4-8-2008 - S/Shri M.V. Ravindran, K.K. Agarwal, JJ. REPRESENTED BY : Shri N.A. Sayed, JDR, for the Appellant. Shri R. Ravindran, Advocate, for the Respondent. [Order per : K.K. Agarwal, Member (T)]. This is an appeal filed by the revenue. The facts of the case are that the respondents were issued a show cause notice seeking to demand duty on notional interest accrued on advances taken by them from their customers, in respect of goods tailor made to the requirements of the customer. The show cause notice sought to demand duty amounting to Rs. 2,46,755/- and to impose a penalty under Rule 25 which was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransaction value by considering all the inputs including the advances taken from the customer would not mean that the price is influenced by the advances so taken, the ld. advocate admitted that the interest element on the advances is taken into account for the purpose of determining the price at which the goods are sold but this interest is adjusted by offering a lower price which would otherwise have been payable, had these advances not been taken. But since the interest element is returned to the customer by suitable reduction in the price, the price cannot be said to be influenced by any other consideration as consideration of interest is duly returned by them in the form of a cut in the price and is not retained by them. Once it is a n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of advance taken along with interest. It needs no comment from us on such absurdity. The price of the goods should not be influenced by the element of interest accruable on advance taken. Once the assessee accepts that the price is reduced on account of interest income, meaning thereby that such reduction would not be there if no advances are taken, then the only inference that can be drawn is that the price was influenced and in view of this the duty on notional interest as proposed in the show cause notice and confirmed by the Assistant Commissioner was required to be paid. 5. In view of the above, we set aside the order of the Commissioner (Appeals) and restore the order of the Assistant Commissioner. (Pronounced on 4-8-2008) - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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