Appellate Tribunal rules liquidated damages not deductible from assessable value. Revenue appeal successful.

The Appellate Tribunal CEGAT, Bangalore held that liquidated damages for delayed delivery cannot be deducted from the assessable value of goods. The Tribunal ruled that such damages are a liability of the assessee and not an allowable deduction. The Revenue's appeal was successful, overturning the previous decision.

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The judgment by Appellate Tribunal CEGAT, Bangalore addressed whether liquidated damages for delayed delivery can be deducted in arriving at assessable value of goods. The Tribunal ruled that liquidated damages cannot be claimed as a deduction for assessable value, as it is a liability of the assessee and not an item of expenditure. The appeal by the Revenue was allowed, setting aside the previous order.

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