Appellate Tribunal rules notional interest not included in assessable value for manufacturer's advance

The Appellate Tribunal CEGAT, Mumbai allowed the appeal, setting aside the impugned order by the Commissioner (Appeals) regarding the inclusion of notional interest on advance taken by a manufacturer in the assessable value. The Tribunal found that unless the advance shown to have depressed the assessable value, notional interest cannot be included. The Commissioner (Appeals) misinterpreted the circular and various judgments supported the Tribunal's decision.

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The Appellate Tribunal CEGAT, Mumbai allowed the appeal, setting aside the impugned order by the Commissioner (Appeals) regarding the inclusion of notional interest on advance taken by a manufacturer in the assessable value. The Tribunal found that unless the advance shown to have depressed the assessable value, notional interest cannot be included. The Commissioner (Appeals) misinterpreted the circular and various judgments supported the Tribunal's decision.

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