9911796707
TMI Blog2016 (1) TMI 820X X X X Extracts X X X X X X X X Extracts X X X X ..... form of advance and, therefore, the notional interest accrued thereon is to be added to the sale price, for such non-addition had resulted in depression of the assessable value of the goods, namely, the bottles manufactured by the respondent-assessee. 2. In the show cause notice, it was mentioned that the assessee had short paid the duty on its products, that is, printed glass bottles, by under-valuing the same at the time of clearance from its factory inasmuch as it did not add "additional consideration" received from M/s. Coca Cola India and M/s. Pepsico India Holdings Pvt. Ltd. The show cause notice referred to the statement of the Manager (Sales) of the Company from which it was discernible that the respondent-assessee had received 90 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed by the Commissioner wherein the statement of the Manager (Sales) had been adumbrated in detail, referred to the other documents that had been put-forth by the revenue before the adjudicating authority and in course of discussion adverted to the principle stated in Commissioner of Central Excise, New Delhi vs. Hero Honda Motors Ltd. (2005) 4 SCC 182 and opined as follows: "In view of the above decision, I am of the opinion that the matter needs to be remanded to the Commissioner for fresh examination in the light of the observation made by the Hon'ble Supreme Court in the case of Hero Honda Motors Ltd. vs. CCE referred supra and after examining the entire aspect of the use of the advances, income generated from the said advances, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bottles and on that count it had granted 3-4 per cent discount. Though the quantum had not been stated precisely, yet it has been found as a matter of fact that M/s. Coca Cola India and M/s. Pepsico India Holdings Pvt. Ltd. had given advances for 90% and 100% respectively for their purchases. 9. In Metal Box India Ltd. (supra), the Court while dealing with the transaction between the appellant therein and M/s. Ponds (I) Ltd., who was a whole-sale buyer of the appellant's goods, had accepted the view of the tribunal and expressed thus: "On the facts on record, therefore, it must be held that the Tribunal was perfectly justified in taking the view that charging a separate price for the metal containers supplied to M/s Ponds (I) Lim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntant and after looking into the accounts of the respondent whether or not the advances or any part thereof have been used in the working capital and whether or not the advances received by the respondent and/or the interest earned thereon have been used in the working capital and/or whether it has the effect of reducing the price of the motorcycle. The tribunal to so decide on the material which was placed before the Commissioner and not to allow any additional documents/materials to be filed before it. None of our observations made herein shall bind the tribunal to which this case is remitted." 11. In the case at hand, the Member (Judicial) has remitted the matter to the competent authority to deal with it afresh in the light of the dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In the case of Hero Honda Motors Ltd. (supra), the facts, as we perceive, were not clear and, therefore, there was a remit. Be it noted, sale price agreed between two competing parties may get depressed, when substantial and huge advances are periodically extended and given with the objective and purpose that the sale price paid or charged would be lowered, to set off the consideration paid by grant of advances. There should be a connect and link between the two i.e. the money advanced it should be established was a consideration paid which could form the basis for depression of sale price. Evidence and material to establish the said factual matrix has to be uncovered and brought on record to connect and link the sale price paid on paper ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
