Assessable value of tailor-made machines excludes interest on buyer deposits when the sale price remains unaffected.

Interest on deposits received from buyers for tailor-made machines was not includible in assessable value where the assessee charged a uniform wholesale price and no nexus was shown between the deposits and any depression in the final price. The later Supreme Court view on free deposits was applied to confirm that, absent evidence that the deposits affected pricing, such interest does not form part of the assessable value. On that basis, the revenue's challenge failed.

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Issues: Whether interest on deposits received from buyers was required to be included in the assessable value of tailor-made machines.

Analysis: The assessee charged a uniform price from wholesale buyers, and there was no finding that the price of the final product had been depressed because of the advances or deposits received from some buyers. In the absence of any such nexus, and following the later Supreme Court view that interest on free deposits is not includible where the price remains unaffected, the revenue's contention was rejected.

Conclusion: Interest on the deposits was not includible in the assessable value, and the revenue appeal failed.

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