Interest on credit sales to be deducted from sale price for assessing value; Tribunal grants relief to appellants.

The Tribunal held that interest on receivables in credit sales should be deducted from the sale price to determine the assessable value. Even though interest was not separately shown in the invoice, it was deemed to be included in the price. Relying on previous decisions, the Tribunal allowed the appeals and granted relief to the appellants, setting aside the Commissioner (Appeals) rejection of the claim.

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Issues Involved:
- Admissibility of interest on receivable to be deducted from the sale price to arrive at the assessable value.

Analysis:
The main issue in this appeal was whether the interest on receivable should be deducted from the sale price to determine the assessable value. The Commissioner (Appeals) rejected the appellant's claim, stating that they did not collect interest separately from customers for delayed payments. However, the appellant argued that the interest was already included in the price. The appellant relied on the Tribunal's decisions in the cases of Gomti Carbon Dioxide and VST Industries, as well as the Eastern Bench decision in the case of Shalimar Paints Ltd. The Tribunal referred to the Larger Bench decision in the case of Gomti Carbon Dioxide, which held that interest on receivables in credit sales should be deducted from the sale price to determine the assessable value. Since the appellant received consideration for goods sold after a particular period, even though interest was not separately shown in the invoice, it was deemed to be included in the price. Therefore, the Tribunal set aside the impugned order and allowed the appeals, granting relief to the appellants.

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