9911796707
TMI BlogCentral Excise - Valuation - Liability of duty on the interest accruing out of security deposits / deposits/ advances deposits taken by manufacturing units. - Reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... ise Customs, New Delhi Subject : Central Excise - Valuation - Liability of duty on the interest accruing out of security deposits / deposits/ advances deposits taken by manufacturing units. - Reg. I am directed to refer to the correspondence resting with Board's Telex dated 13.3.91 issued from F.No. 6/1/91-CX.I. 2. The matter regarding inclusion of notional interest on advances/ deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee on the interest free loan was required to be reloaded by hiking the price charged to the extent. The Division Bench of High Court at Madras in the aforesaid case of UOI Others - V. Lakshmi Machines Works Ltd. based itself on the aforesaid Judgement of the Supreme Court in the Metal Box India Ltd. case and held that the Department must show the extent of benefit obtained by the assessee o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest earned by such deposit is credited to the buyer, the notional interest on such advance can not be added to the price. In other cases, the notional interest on deposits and advances may have to be loaded to the assessable value of excisable goods where there is evidence that the advance on security deposit has conferred a direct or indirect pecuniary advantage on the assessee as contempla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case and principles of costing/ banking for arriving at the benefit if any derived by the assessee out of such advance/ deposit. 6. Board's Circular No. 18/90-CX. I (F. No. 6/1/90 dated 13.3.90) stands withdrawn. 7. All pending cases may be decided expeditiously. Sd/- (S.C. Bhatia) Under Secretary to the Govt. of India - Circular - Trade Notice - Public Notice - Instruct ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
