TMI Blog1998 (5) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... DR, for the Respondent. [Order per : Justice U.L. Bhat, President]. These appeals are directed against the common Order-in-Original Nos. 34 to 43/97, dated 19-2-1997 passed by the Commissioner of Central Excise, Indore holding that notional interest at 18% on advances collected from buyers of many of the machinery parts manufactured and cleared by the appellant should be included in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amounts of advances and if the interest-free advance amounts were not available appellant s prices would have gone higher than the contract prices since, if loans had been taken from finance institution, appellant would have to pay interest which would ordinarily be loaded on the price and the interest accrued on the advance amount was an extra-consideration. There is no dispute that the advance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India Ltd. the Supreme Court indicated that 45% discount was given to the favoured buyer who paid a huge amount as interest free advance. These facts considered by the Supreme Court clearly indicated nexus between the receipt of advance and the discount given to the buyer and the price contracted with the buyer. The two decisions of the Tribunal referred to also indicate the requirement of nexus b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the price and the receipt of the advance was not adverted to in the decision in the manner contemplated in the Metal Box decision of the Supreme Court. 5. The goods manufactured by the appellant were tailor-made goods. Machine parts ordered by a particular buyer in the event of his failure to pay the price and accept the goods, cannot be passed on to other prospective buyer. In order to cover th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r-made goods to establish a nexus, will not relieve the department of the responsibility of establishing nexus by some credible means or other. 6. The facts of the present case by themselves are not sufficient to establish such a nexus; that being so the Commissioner was in error in including in the assessable value notional interest on amount of advance. 7. We set aside the impugned order and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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