M/S. Ferro Foundries (P) Ltd. Vs. Commissioner of Central Excise, - Court Judgment |
| Customs Excise and Service Tax Appellate Tribunal CESTAT |
| Feb-15-2001 |
| M/S. Ferro Foundries (P) Ltd. |
| Commissioner of Central Excise, |
1. these are 12 appeals filed by m/s. ferro foundries (p) ltd. since the issue involved is common in all these appeals, they are taken together and are being disposed of by a common order. the point to be considered in these cases is whether notional interest on advance is to be added in determining the assessable value.2. shri. t.g. thomas appearing for the revenue tries to convince us that there was nexus between advance taken and the manufacturing activity.3. we find that the issue involved herein has been considered by the tribunal in a series of cases by following the ratio of the decision of the supreme court in the case of vst industries ltd., vs. cce, hyderabad, reported in 1998 (97) elt 395 (sc) wherein it was held that notional interest cannot be added. further nothing has brought on record to substantiate that there was nexus between advance taken and the manufactured products value. accordingly, following the ratio of the decision of the supreme court, all these appeals are allowed with consequential relief.
1. These are 12 appeals filed by M/s. Ferro Foundries (P) Ltd. Since the issue involved is common in all these appeals, they are taken together and are being disposed of by a common order. The point to be considered in these cases is whether notional interest on advance is to be added in determining the assessable value.
2. Shri. T.G. Thomas appearing for the revenue tries to convince us that there was nexus between advance taken and the manufacturing activity.
3. We find that the issue involved herein has been considered by the Tribunal in a series of cases by following the ratio of the decision of the Supreme Court in the case of VST Industries Ltd., Vs. CCE, Hyderabad, reported in 1998 (97) ELT 395 (SC) wherein it was held that Notional interest cannot be added. Further nothing has brought on record to substantiate that there was nexus between advance taken and the manufactured products value. Accordingly, following the ratio of the decision of the Supreme Court, all these appeals are allowed with consequential relief.