2005 (9) TMI 436

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.... duty of Rs. 17,43,449/-. The reason for the demand is that the respondents collected the duty on freight and interest on receivables. The Assistant Commissioner has not accepted the repayment of duty collected on freight and interest on receivables by way of issuing credit note to the customers. However, the respondents were successful before the Commissioner (Appeals). The Commissioner (Appeals) allowed the respondents' appeal on merits. Aggrieved over the Commissioner (Appeals)'s order the Revenue come to the Tribunal for relief on the following grounds :- (i)      The CESTAT in the case of CCE v. Addison & Co. [1997 (93) E.L.T. 429 (Tribunal) = 1997 (20) RLT 479] has held that once the assessee has passed on ....

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....he sale value, after the sale is effected, is eligible for deductions in terms of the Hon'ble Supreme Court's judgment in the case of MRF. 3. Smt. R. Bhagya Devi, ld. SDR appeared for the Revenue and Shri T. Ramesh, ld. Counsel for the respondents. 4. Ld. Counsel made the following submissions :- (a) It has been erroneously stated that in the grounds of appeal at para 3 that in order to get the refund claim of excess duty paid on account of freight and interest, the respondents have returned back the duty collected earlier. The issue involved in the present case is not relating to refund of excess duty paid on freight and interest but relating to as to whether, the demand of central excise duty by disallowing the per....

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....d judgment is reproduced below :- "66. The case of the assessee (Madras Rubber Factory) is that where the goods are sold to up-country wholesale buyers and payments are received quite sometime later, it is indeed a case of sale on credit and, therefore, the interest charged from the date of delivery of goods till the date of realisation of the price thereof, should be deducted from the value of the goods. The interest charged, it is submitted, is only in lieu of the time taken in making the payment by the up-country wholesale buyer. Since this is the amount received subsequently to the sale from the depots and does not fall' within the ambit of any of the expenses held includible in Bombay Tyre International, it is clearly excludibl....