2013 (12) TMI 452

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....s branch sale offices situated at various places in India, other products like semis, defective/rejected iron and steel products and cuttings of iron and steel products are directly sold from respondent's plant as to buyers selected by tendering process. One of the conditions of the tenders for sale of defective/rejected material, issued by the material Sales Department is that on receipt of the sale other the buyer shall deposit the amount as per details indicated in the sale order by demand draft, the payment shall be made within 28 days from the date of sale order or within the time as stipulated in the sale order and that if the date of payment is extended on request of the buyers, the buyer shall be liable to pay a 'ground rent' at the....

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....the respondent against this order to Commissioner (Appeals), the Commissioner (Appeals) vide order-in-appeal dt. 18.07.2005 set aside the Additional Commissioner's order and allowed the appeal, on the ground that while the original Adjudicating Authority has treated the amount being charged as 'ground rent', as storage charges and on this basis includible in the assessable value, while a reading of Clause 11 of the tender indicates that amounts being collected are the charges of delayed payment and there is nothing to suggest that these are storage charges and that in terms of Apex Court's judgment in the case of Union of India Vs. Bombay Tyres reported in 1983 (17) ELT 329(SC), the amount paid on account of delayed payment is not includibl....