9911796707
TMI Blog2017 (2) TMI 1059X X X X Extracts X X X X X X X X Extracts X X X X ..... of M/s. MFIL. Therefore in such situation nothing left to be further included in the sale value of the M/s. MFIL on which the excise duty was discharged. Notional interest need not be included in assessable value - appeal dismissed - decided against Revenue. - E/820/99 - A/85615/17/EB - Dated:- 31-1-2017 - Shri Ramesh Nair, Member (Judicial) And Shri Raju, Member (Technical) Shri Ajay Kumar, Jt. Commr. (A.R.) for Appellant Shri M.H. Patil, Advocate for respondent ORDER Per Ramesh Nair The issue involved in the Department s appeal is that whether notional interest on the advances given to the appellant by M/s. Mahindra Ford India Ltd. (MFIL) is liable to be included in the assessable value of the vehicles manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng fixed and variable cost would not include profit margin for 24 months and thereafter to include profit margin; to enable respondents to pay excise and other duties; M/s. MFIL would provide trade advance equal to the amount of excise duties net of modvat credit etc. The operation of manufacture of Ford Escort cars on behalf of M/s. MFIL was carried out in accordance with the procedure laid down in notification No.27/92-CE(NT) dt. 9.10.1992 issued under rule 174 of Central Excise Rules, 1944. M/s. MFIL availing the exemption from operation of Rule 174 in terms of Notification No. 27/92-CE(NT) dt. 9.10.1992 authorized the respondent to comply with all procedural formalities under Central Excise Salt Act, 1944 and the rules made thereunder i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingly the duty demand thereon is legal and proper. Therefore the Commissioner (Appeals) order is not sustainable. 3. Shri M.H. Patil, Ld. Counsel for the respondent appeared on behalf of the respondent submits that the entire basis of demands is not sustainable on the ground that the respondent has discharged the duty of the sale price of M/s. MFIL. The advances given by the M/s. MFIL has no relevance for the purpose of valuation in the fact of the present case as the respondent has not discharged the duty on the value based on cost construction method. The every cost stand included in the sale price of M/s. MFIL not only cost of respondent but also the cost and profit of the M/s. MFIL. Since there is no extra consideration over and abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice of M/s. MFIL to customer. Accordingly, the respondent has discharged excise duty on such price of the vehicle. In our view, the notional interest can only be added, in case the respondent valued their goods on cost construction method or if the goods is sold by the respondent to M/s. MFIL at a price lower than the price at which M/s. MFIL sold the vehicle. The present case does not fall any of these two categories. The respondent paid the duty on the sale price of M/s. MFIL, which includes all the expenditure and profits of respondent as well as of M/s. MFIL. Therefore in such situation nothing left to be further included in the sale value of the M/s. MFIL on which the excise duty was discharged. It is settled position that notional int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cceptability of the appeal, I am disposing of appeal No. 1080/98 also in respect of which the hearing has not yet been held but in which the same party same issue and similar submissions are involved also by this common order. I set aside the Orders-in-Original No. 110/97 dt. 28.8.98 and 308/98 dt. 11.9.98 passed by Asstt. Commissioner, Nashik I Division and allow appeal Nos. 764/97 and 1080/98 filed by the appellants against these orders for the reasons discussed hereinabove. On going through the above finding, we do not find any infirmity therein, therefore we are in total agreement with the findings of the Commissioner (Appeals). As per our discussion made hereinabove and agreeing with the impugned order, the Revenue s appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
