TaxTMI 
TaxTMI 
2007 (6) TMI 45
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....69 (S.C.)] and Commissioner of Central Excise, Hyderabad v. Novapan Industries Ltd. [2007 (209) E.L.T. 161 (S.C.)]. The appellants are engaged in the manufacture of lubricating oils/preparations. In respect of the goods cleared by them from April-December, 1996, they deducted Rs. 1.696 per unit quantity from the sale price to arrive at the assessable value for the purpose of payment of duty. The component of deduction towards 'interest on receivables' was Rs. 0.563 per unit quantity. This deduction was disapproved by the lower authorities who demanded differential duty from the assessee for the above period. This demand is under challenge in the present appeal. 2. The assessments for the above period were provisional as permitted by the ....
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.... the price structure and should be deducted from the value of the goods. Their Lordships held that the question whether the price structure itself included the interest charged or not was a matter for establishment on evidence. In the case of Novapan Industries Ltd. (supra) considered by the apex court, the question was whether the amount of interest on receivables was deductible from the sale price where such interest was inbuilt in the price and was not charged separately. Their Lordships found that the issue was already covered by the judgement in Government of India v. Madras Rubber Factor [1995 (77) E.L.T. 433 (S.C.)] and it was reaffirmed that, where the interest element was inbuilt in the price of the goods, its deduction from the pr....
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....payment on the date of sale itself. The same is the position emerging from other invoices produced by learned counsel. Everywhere, the unit price of a given commodity shown in the C.O.D. invoice is less by1.75% of the unit price of the same goods shown in the credit sale invoice. It would thus appear that the price mentioned in a credit sale invoice for a given product is the normal price and the one mentioned in the C.O.D. invoice is the discounted price. None of the credit sale invoices indicates any claim of interest on receivables. Invoice No. M 52168 dated 6-9-1996, which is a credit sale invoice prescribing a period of 7 days for payment shows the price of ALL PURPOSE GRS 88 as Rs. 69.50 per litre/kg; Invoice No. M 52152 dated 5-9-199....
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....ot entitled to claim deduction of any "interest on receivables" from sale price for the purpose of determining the assessable value of the subject goods and consequently they were liable to pay duty on the differential value of the goods. The assessee's case does not pass the test laid down by the Hon'ble Supreme Court in MRF case (supra) and reiterated in Novapan Industries (supra). Appeal No. E/V-269/1999 gets dismissed. 7. In the remaining appeal, there are two applications of the assessee (appellant) coming up for consideration. One of these is for waiver of pre-deposit and stay of recovery in respect of an amount of duty of Rs. 5,60,383/- demanded by the lower authorities for the period January to December, 1997. The other applicati....