2008 (5) TMI 220

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....est element in the price of goods cleared. There were outstanding amounts against their sales and clearance. The refund claims were rejected by order dated 14-7-2000 of the Deputy Commissioner. He found that refund claims were for interest on sale value for the credit period between date of sale and the date of payment in credit sales. He also found that the Apex Court had allowed deduction of interest from the assessable value where the assessee had charged interest over and above the in voice price from its customer, where the payments for goods received were made much after the date of sale and clearance. He found that the case of the appellant was not covered by the Apex Court decision in GOI v. MRF Ltd. - 1995 (77) E.L.T. 433 (S.C.). D....

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.... A. Infrastructure Ltd. v. CCE, Jaipur [2004 (167) E.L.T. 369 (S.C.)]. The ld. Consultant cited the following case law in support of the impugned order. (1) Reliance Industries Ltd. v. CCE, Mumbai - 2004 (165) E.L.T. 350 (Tri.-Mumbai) (2) CCE, Kolkata-II v. Andaman Timber Industries. - 2004 (165) E.L.T. 338 (Tri.-Kol.) (3) V.S.T. Industries Ltd. v. CCE, Hyderabad - 1999 (114) E.L.T. 676 (Tri.) (4) CCE, Hyderabad v. Novapan Industries Ltd. - 2001 (137) E.L.T. 662 (Tri.- Chennai) (5) PMP Components Ltd. v. CCE, Mumbai-V - 2001 (135) E.L.T. 914 (Tri.-Mumbai) (6) Shalimar Paints Ltd. v. CCE, Calcutta-II - 2001 (128) E.L.T. 492 (Tri.-Cal.) (7) G. Claridge & Co. Ltd. v. CCE, Chandigarh - 1998 (102) E.L.T. 214 (Tri.) In all....

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....ntitled to claim deduction of any "interest on receivables" from sale price for the purpose of determining the assessable value of the impugned goods in view of the decision of the apex Court in A. Infrastructure Ltd. v. CCE, Jaipur (supra) in the above judgment the Apex Court observed as follows: "8. In cases where buyers do not make payments immediately against delivery of the goods but payments are received subsequently it would indeed be a case of sale of credit and, therefore, interest is chargeable from the date of delivery of goods till the realisation of price thereof and should be deducted from the value of the goods. The question whether in a given case the price structure itself includes the interest charged or not is a matter....