1998 (3) TMI 214

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.... in advance to a person to the appellant through a person nominated by appellant. The advance remains with the appellant for a maximum period of two weeks and depending on the stock held by the appellant at a particular point of time delivery of the goods may be affected earlier than 15 days. The Department issued notice to the assessee alleging that the interest payable on the advance received from the dealers should be included in the assessable value of the goods manufactured. Notice alleged that by taking such advance the assessee had avoided borrowing from banks on an equivalent amount on which it would have paid the interest the advances were equivalent to bank loan. The notice, issued in 1997 for the goods cleared between July, 1992 ....

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.... upon the decision of the Supreme Court in Metal Box (India) Ltd. v. C.C.E., Madras - 1995 (75) E.L.T. 449 (S.C.) = 1995 (6) RLT 519 (S.C.) and VST Industries Ltd. & Ors v. Collector of Central Excise, Hyderabad - 1998 (97) E.L.T. 395 (S.C.) = 1998 (24) RLT 221 (S.C). 4. The Departmental Representative adopts the reasoning of the Commissioner saying that, but for this advance the assesssee would have had to take a loan from a bank or commercial institution for which it had to pay interest which it would have recovered from the customers by including in the assessable value. Therefore, the interest payable on these advances ought to be included in the assessable value. He says the decisions relied upon by the appellant are distinguis....