2008 (7) TMI 105

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....g charges ld. Commissioner (Appeals) held as under :- "However, the appellant in their appeal memorandum have pleaded that the adjudicating authority had ignored the relied upon documents like purchase orders and order acknowledgements which the appellant had produced during the time of personal hearing. Hence the appellant were directed to produce all documents which they claim are relevant to prove that the deductions claimed by them are admissible deductions. Accordingly, the appellant submitted copies of price declarations, copies of purchase orders/order acknowledgement etc. for verification to this office. On perusal of the copies of purchase orders/order acknowledgements submitted vide Exhibit 'N' to the appeal memorandum, it is s....

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....& II for the relevant period were called for and it was verified from the same that the appellant had not availed modvat credit on packing materials. The appellants have also given a declaration to this effect in their price lists. Hence, since the appellant have foregone the modvat credit on packing materials, they are entitled for deduction on account of packing materials. If the packing is being done at the instance of customers, then the quantum of such packing charges are to be deducted from the assessable value. There are number of case laws allowing such deductions. I rely upon the following case laws :- (i) Hindustan National Glass & Inds. Ltd. v. CCE, Calcutta-II -1999 - (XC2) - GJX - 3542 - CEGAT. (ii) Lacto Costentics (V....

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....pplying the prevailing rate of interest charged by banks. Since the department has not disputed the figures supplied by the appellants, hence as per the order of Commissioner (Appeals) dated 31-10-1984, the appellants shall also be entitled for deduction on account of credit sale. In the case of Shriram Fertilisers & Chemicals - 1997 (96) E.L.T. 12 (S.C.), the Hon'ble Apex Court has held that interest on credit sales is deductible from the assessable value. I also rely on the following case laws wherein the interest on credit sales, are held as deductable from the assessable value. (i) G.O.I. v. MRF Ltd. - 1995 (8) RLT 517 (S.C.) (ii) Jay Chemicals Industries - 1997 (21) RLT 245 (T) (iii) VST Industries Ltd. v. CCE - 1998 (74) ECR ....