1998 (1) TMI 175

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....hri M. Ali, JDR, for the Respondent. [Order per : Justice U.L. Bhat, President]. - The dispute in this appeal arises on two price lists referred to in the order-in-original passed by the Assistant Collector of Central Excise, Kanpur. The price lists were filed with reference to Detergent Washing Powder - Nirma Brand. The price declared was Rs. 7.10 per kg. Note (2) indicated that the above p....

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....inst delivery, the interest element would be refunded by credit note. Where payment is made within 20 days there would be refund of proportionate interest. However, according to the department, the interest element for first 20 days is deliberately included in the price subject to the liability to return it if, under the contract, interest did not actually accrue. If payment is delayed beyond 20 d....

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....t on the 10th day and since the interest element on the remaining 10 days is included in the price, he is entitled to refund of proportionate interest. This method of collecting advance interest was adopted, evidently to safeguard against difficulties in collection of interest subsequently but subject to liability to refund interest in case there is no delay. The principle laid down in MRF Ltd. ca....