2017 (8) TMI 355

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....invoices but factually they have not given discount to the buyers. In certain cases, they issued debit notes to the buyers but have not paid duty, therefore, the show cause notices were issued to the appellant and the same were adjudicated, converted into demanding of duty. 2. The facts of the case are that the appellant is engaged in manufacture of various types of yarns and fabrics and paying duty on the selling price to the dealers/buyers. As per selling policy of the appellant, it is clear that if the payment is made within seven days, the buyers are entitled to cash discount. In certain cases, the appellant received advances from the buyers towards supply of the goods. On the advance, the appellant is paying interest to the buyers o....

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.... or not. The adjudicating authority has desired that the Superintendent should verify each and every entry of these annexure and file his report. The Superintendent has verified and given its report how much amount they are liable to pay duty and also verified that the amount on which they are liable to pay, duty has been paid. But the adjudicating without giving any reasoning discarded the report given by the Superintendent on false grounds that the appellant has not produced records. He further submits that the appellant is paying interest on advance deposited by the buyers on higher rate than the bank lending rate and the same has not been considered by the adjudicating authority and hS taken imaginary figures that the interest is payabl....

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....r not. Issue No.1 7. As per CEBC s circular No.404/37/98-Cx dated 22.6.1998, it has been clarified that if the selling price is influenced in that case notional interest on advances received from the buyers, the notional interest is required to be added in the assessable value. In the case in hand, the appellant is paid interest to the buyers on advanced deposited which is higher than the bank lending rate. Further, as per selling policy of the appellant, if the buyer is making the payment within seven days or advance received from the buyers, the discount rate is same. In that circumstance, the selling price of the goods to the buyers who paid duty advance has not been influenced, therefore, notational interest is not required to be ....