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of <h1>Appellate Tribunal allows interest deduction on excisable goods, rejecting Revenue appeals.</h1> <h3>COMMISSIONER OF C. EX., HYDERABAD Versus NOVAPAN INDUSTRIES LTD.</h3> COMMISSIONER OF C. EX., HYDERABAD Versus NOVAPAN INDUSTRIES LTD. - 2001 (137) E.L.T. 662 (Tri. - Chennai) Issues:Availability of deduction of interest on receivables from the assessable value.Analysis:The judgment by the Appellate Tribunal CEGAT, Chennai involved five Revenue appeals concerning the deduction of interest on receivables from the assessable value of excisable goods. The appeals were against orders passed by the Commissioner (Appeals) and were considered together due to the common basic issue. The Revenue contended that interest on receivables cannot be deducted if not charged above the sale price, citing a Board's Circular. However, the impugned orders allowed such deduction even when interest was in-built in the price, leading to the dispute.The learned Counsel for the Respondent argued that the grounds of appeal by the Revenue went beyond the show cause notices, citing legal precedents. The Counsel highlighted that the final judgment in the MRF case by the Supreme Court had considered the issue of deductibility of interest even when in-built in the price. Referring to a previous Tribunal order, the Counsel argued that the abatement should be allowed, superseding the Board's Circular.The Tribunal examined the submissions and records, noting that certain grounds raised by the Revenue were beyond the scope of the show cause notices and could not be considered at the appellate stage. It was emphasized that the issue of interest being in-built in the price had been previously addressed in a Tribunal order, allowing for deduction despite being included in the price. The Tribunal concluded that the Board's Circular was overridden by the Supreme Court's judgment in the MRF case, and there was no basis to interfere with the impugned orders. As a result, the Revenue appeals were rejected.In summary, the judgment addressed the issue of deducting interest on receivables from the assessable value of excisable goods. It analyzed legal arguments regarding the Board's Circular, show cause notices, previous Tribunal orders, and the final judgment in the MRF case by the Supreme Court. The Tribunal ruled in favor of allowing the deduction of interest even when in-built in the price, citing legal precedents and finding no reason to overturn the impugned orders.
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