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2023 (9) TMI 9 - CESTAT CHANDIGARHDeduction of interest on receivables from the assessable value - HELD THAT:- The interest on receivables has been deducted on the basis of the purchase orders and invoices wherein it is clearly mentioned that the interest on receivables is on account of credit period and interest for the credit period is inbuilt in the price. This issue has been considered by various benches of the Tribunal and it has been consistently held that interest on receivables is admissible to the assessee even when the interest is inbuilt in the price in invoice. It is also found that the department cannot demand duty arising due to accounting treatment adopted by the appellant as held in the case of FIRM FOUNDATIONS & HOUSING PVT. LTD. VERSUS PRINCIPAL COMMISSIONER, OFFICE OF THE PRINCIPAL COMMISSIONER OF SERVICE TAX [2018 (4) TMI 613 - MADRAS HIGH COURT] wherein the Hon’ble High Court set-aside the demand of service tax computed on the basis of profit & loss account and held that it is irrelevant for the purposes of determination of service tax payable. When the demand of tax itself is not sustainable, the demand for interest and penalty is not justified. The impugned order is not sustainable - Appeal allowed.
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