2005 (9) TMI 463

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....the Appellant. Shri R.C. Sankhla, SDR, for the Respondent. [Order per : C.N.B. Nair, Member (T)]. - These appeals are directed against duty demand and imposition of penalty. The duty demand has been made upon a finding that the appellant was charging "financial cost", that financial cost is an additional realisation on the yarn sold by it and should form part of the assessable value. 2....

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.... charged extra. (3)        Freight/Insurance to be charged extra. (4)        Financial Cost will be charged extra. (5)        Cash Discount equivalent to Financial cost, will be allowed if payment made within 7 days. (6)        Trade Discount as in....

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.... while interest for delayed payment i.e. beyond 30 days, is @ 24%. Thus, as a matter of fact, financial cost is at a lower rate than interest charged. From this, it is clear that the charge under 'financial cost' cannot be anything other than towards interest. 4. The invoices made available to us by the Revenue and the assessee also show that the appellant is not seeking any reduction from....

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....nvoices show price of yarn and other costs like sales tax, insurance freight, octroi and financial cost etc. over and above the price of the yarn sold. It is clear from this also that the appellant manufacturer as well as its buyer treat financial cost as additional cost and not as part of the cost of the yarn. In such a situation, there is no ground for holding that the assessee is seeking any re....