2003 (3) TMI 628 - AT - Central Excise

CEGAT Mumbai: Appellate Tribunal allows deduction for interest receivable from sale price. Appeal allowed, impugned order set aside.

The Appellate Tribunal CEGAT, Mumbai ruled in favor of the appellant, allowing their claim for deduction from the sale price for interest receivable. The ... Interest element in sale price - deduction from sale price - requirement of separate disclosure of interest - interest treated as part of sale consideration - application of precedentInterest element in sale price - requirement of separate disclosure of interest - interest treated as part of sale consideration - Whether the element of interest receivable on deferred payments forms part of the sale price and is eligible for deduction even though interest was not shown separately. - HELD THAT: - The Tribunal applied the ratio of the Larger Bench decision in Gomti Carbon Dioxide v. CCE, which held that there is no legal requirement for the interest element to be shown separately and that such interest forms part of the sale price. The departmental representative did not advance any reason to distinguish or displace that precedent. On that basis the Tribunal concluded that the interest element could be treated as part of the sale consideration and allowed as a deduction despite not being shown separately in the invoice or sale documents.Appeal allowed; the interest element is part of the sale price and may be deducted even though not separately shown.Final Conclusion: The appeal is allowed and the impugned order is set aside: the interest element receivable on the deferred sale price is to be treated as part of the sale consideration and is deductible even if not shown separately, following the Larger Bench precedent applied by the Tribunal. The Appellate Tribunal CEGAT, Mumbai ruled in favor of the appellant regarding the liability to deduction from the sale price for interest receivable. The appellant's claim for deduction was allowed based on a previous decision where interest did not need to be shown separately in the sale price. The appeal was allowed, and the impugned order was set aside.