https://www.taxtmi.com/caselaws?id=104243 Notional interest on customer advances or security deposits is includible in the assessable value of excisable goods only where the department proves a direct nexus between the advance and the sale price and shows that the advance depressed the price or gave the manufacturer a measurable financial benefit. Where identical goods were sold at the same price whether or not advances were taken, no addition for notional interest is justified under the valuation provisions. If the substantive demand fails on valuation, penalties based on that demand also cannot survive. On these facts, the impugned orders were set aside and the appeals were allowed. en-us Wed, 26 Jun 2002 00:00:00 +0530 Tue, 28 Feb 2012 13:16:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=104243 Notional interest on customer advances or security deposits is includible in the assessable value of excisable goods only where the department proves a direct nexus between the advance and the sale price and shows that the advance depressed the price or gave the manufacturer a measurable financial benefit. Where identical goods were sold at the same price whether or not advances were taken, no addition for notional interest is justified under the valuation provisions. If the substantive demand fails on valuation, penalties based on that demand also cannot survive. On these facts, the impugned orders were set aside and the appeals were allowed. Case-Laws Central Excise Wed, 26 Jun 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=104243