duty on notional interest

[chiranjilal meena]

central excise duty liability on notion interest on security deposit

AI Summary

Excise Duty Not Applicable on Notional Interest Unless Sale Price Influenced by Security Deposit, Revenue Must Prove Price Impact A query was raised regarding the central excise duty liability on notional interest from a security deposit. The response clarified that excise duty is not applicable on notional interest unless it can be demonstrated that the sale price is influenced by the deposit. It is the responsibility of the Revenue (CBEC) to prove that the price charged is lower compared to supplies to other parties.