Notional interest on buyer advances excluded from assessable value absent proof of price impact

Notional interest on advance payments was considered in relation to excise assessable value, but it was not includible where the advance was small, remained with the buyer only for a few months, and there was no evidence that sales without advance fetched a higher price or that the advance depressed the price. In the absence of proof of any pricing impact, the assumed interest benefit could not be added to assessable value. The impugned order was set aside and the appeal was allowed.

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Issues: Whether notional interest on the advance amount received from the buyer was includible in the assessable value of the goods.

Analysis: The advance was small, remained with the appellant only for a few months, and there was no material to show that sales without advance were made at a higher price or that the advance depressed the price in any manner. In the absence of such evidence, the assumed interest benefit could not form part of the assessable value.

Conclusion: The notional interest element was not includible in the assessable value.

Final Conclusion: The impugned order was set aside and the appeal was allowed.

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