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TMI Blog2013 (12) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... here is no basis for the Department's plea that the 'ground rent' is the storages charges for the period of delay in lifting of the goods by the customers - the 'ground rent' is nothing but interest on receivables which is not includible in the assessable value – Following Union of India Vs. MRF Ltd. [ 1995 (5) TMI 28 - SUPREME COURT OF INDIA] – Decided against Revenue. - E/3402/2005 - FINAL ORDER NO.56515/2013 - Dated:- 3-5-2013 - Archana Wadhwa And Rakesh Kumar, JJ. Appellant : Sh Nagesh Pathak, DR. Respondent : Sh Anil Jain, Counsel PER : Rakesh Kumar 1.1 The Respondent has a unit of Steel Authority of India Limited, a integrated steel plant, is engaged in the manufacture of various iron and steel products, chargeable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e view that the 'ground rent' being recovered by the respondent for period of delay in the making of payment is includible in the assessable value, as this amount is being collected in connection with the sale of goods. On this basis a Show Cause Notice dtd. 01.01.2004, was issued for demand of differential duty amounting to Rs. 14.13 lakhs in respect of sales of defective/rejected iron and steel products during period from Dec. '98 to June 2003 along with interest under section 11AB and also for imposition of penalty on the respondent under section 11AC of Central Excise Act. The Show Cause Notice was adjudicated by Additional Commissioner vide order-in-original dtd.17.03.2005 by which the duty demand as mentioned above, was confirmed alon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court Judgment in the case of Bombay Tyres International Ltd. reported in 1983(14) ELT 1896 (SC) the sales organizations expense up to the delivery of goods, interest on inventory and marketing/selling organization expense are includible in the assessable value and that the amount being charged as 'ground rent' is the expense incurred on storage of goods prior to completion of sales and hence the same is includible in the assessable value and as such the order of the Commissioner (Appeals) is not correct. 4. Sh. Anil Jain, the learned Counsel for the Respondent defended the impugned order by reiterating the findings of the Commissioner (Appeals) and pleaded that the amount recovered as 'ground rent' is noting but charges for delay in paym ..... X X X X Extracts X X X X X X X X Extracts X X X X
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