Assessable value and security deposit interest: without proof of price reduction, notional interest cannot be added.

Notional interest on a security deposit is not includible in the assessable value for central excise where there is no material showing that the deposit formed part of the sale price or that deposit-paying dealers received any special consideration. In the absence of proof that the deposit reduced the price charged to buyers, the uniform wholesale price cannot be disregarded and neither notional nor actual interest on the deposit can be added to assessable value. The assessee's contention succeeds.

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Issues: Whether notional interest on security deposit is includible in the assessable value for central excise purposes.

Analysis: The Tribunal followed the Supreme Court's ruling that, where there is no material to show that receipt of security deposit the sale price or that any special consideration was given to deposit-paying dealers, the uniform wholesale price cannot be disregarded. In the absence of proof that the deposit reduced the price charged from buyers, notional or actual interest on such deposit cannot be added to the assessable value.

Conclusion: Notional interest on security deposit is not includible in the assessable value, and the contention of the assessee succeeds.

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