M/S. Flomatic Engineers Vs. Commissioner of Central Excise - Court Judgment

Excerpt:

1. the departmental representative accepts that the question for consideration in this appeal, the includability in the assesssable value of the goods manufactured by the appellant of the notional interest on advances taken by it form its buyers, is covered by various decisions of the supreme court and the tribunal [such as vst industries ltd. vs cce 198 (97) elt 395]. neither the order of the assistant commissioner (appeals) indicates any nexus between the fact of advances and reduction in price. in the absence of any such nexus, the notional interest is not includable in the assessable value.

Judgment:

1. The Departmental representative accepts that the question for consideration in this appeal, the includability in the assesssable value of the goods manufactured by the appellant of the notional interest on advances taken by it form its buyers, is covered by various decisions of the Supreme Court and the Tribunal [such as VST Industries Ltd. Vs CCE 198 (97) ELT 395]. Neither the order of the Assistant Commissioner (Appeals) indicates any nexus between the fact of advances and reduction in price. In the absence of any such nexus, the notional interest is not includable in the assessable value.