Central Excise - Valuation - Liability of duty on the interest accruing out of security deposits / deposits/ advances deposits taken by manufacturing units. - Reg.

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..... ct : 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/ deposits in the assessable value of excisa .....

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..... s 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 on the interest free loan obtained by .....

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..... edited 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 contemplated by the Supreme Court in the case o .....

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