1998 (2) TMI 425

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....ellant. Shri D. Gurnani, JDR, for the Respondent. [Order per : K.S. Venkataramani, Member (T)]. - The appeal is directed against the Order dt. 19-2-1997 passed by the Commissioner of Central Excise, Mumbai-III. The appellants manufacture Overhead Cranes and these cranes are produced against specific orders of each customers and they are tailor made to suit the specifications of customers.....

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....e of goods and so would have been loaded to the sale price of the goods. Hence, the Commissioner held that the notional interest on advances would have been automatically loaded to the value of the goods and he observed that notional interest on advances have the effect of depressing the value of the goods. He also drew support from the Supreme Court decision in the case of Metal Box India Ltd. v.....

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.....T. 120 (Tribunal). There the Tribunal has followed the Supreme Court decision in Metal Box India Ltd. and has found that the Department has to marshal evidence to show that a part of the price being received as an advance and being retained for a short period had been or would have been taken into consideration in fixing the uniform price for all buyers. In the absence of any such evidence it wou....

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....see as a result of taking of advances the assessing officer should use the provisions of Section 14A of the Central Excise Act, and have a costing exercise done before determining the price approval. In the present case apart from observing that the advance taken has depressed the price no evidence has been led by the Commissioner, in the impugned order and it has not been shown that because of th....