Deferred payment credit charges and assessable value under central excise were remitted for fresh scrutiny.

Credit charges recovered from customers on deferred payments were examined for inclusion in the assessable value of goods under central excise law. The article notes that the assessee treated the charges as compensation for delayed payment, not as part of the factory-gate price, and that the materials on record were insufficient to support a finding that the normal price had been artificially reduced through imaginative credit charges. It also indicates that a closer scrutiny of the papers and documents was necessary to determine whether the amount was interest on deferred payment or an additional element of value. The inclusion issue was not finally upheld and was sent back for fresh reconsideration.

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Issues: Whether the credit charges realised by the assessee from customers on deferred payments were includible in the assessable value of the goods for central excise purposes.

Analysis: The credit charges were treated by the assessee as compensation for delayed payment and not as a component of the price at the factory gate. The available materials were found insufficient to sustain the finding that the normal price had been artificially reduced by showing imaginative credit charges. The matter required a closer scrutiny of the relevant papers and documents to determine whether the amount represented interest on deferred payment or an additional element of value.

Conclusion: The inclusion of credit charges was not finally upheld and the question was remitted for fresh scrutiny and reconsideration.

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