2000 (3) TMI 100

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....al Excise duty. The claim was on the ground that where there is time lag between the sale of the goods and the receipt of payment, the interest for the period between the sale of the goods and the receipt of the payment is required to be deducted from the amount realised so as to make the assessable value equal to the price at the time of sale of the goods. However, this claim of the appellants has been rejected on the ground that there was no separate interest levied on account of the delay in payment for the goods and that where interest is not separately collected, deduction is not permissible. As against this, the appellants have submitted that deduction towards interest on receivables is permissible irrespective of whether the interest....

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....produced below :- "16. Another head of deduction disallowed to MRF relates to interest on receivables (sundry debtors for sales). MRF has represented that this cost is inbuilt in the price and is incurred on account of the time factor between the time the goods are delivered and the time the moneys are realised. The cost is incurred only where credit terms are given in case of up-country and other buyers where payment is made much after the sales are effected. They contend that it is nothing but an extension of the principle underlying Rule 4 of the Central Excise (Valuation) Rules. They contend that this is an adjustment in value required to be made to take into account and provide for the difference in the time of delivery and the real....