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2009 (4) TMI 187 - CESTAT, MUMBAIValuation - Whether the notional interest accruable on the advances taken from the customers is to be added to the assessable value of the goods. - the interest is not part of the Transaction Value - there is no nexus between the advances taken and the prices charged – there is no any evidence to suggest that the interest free advance has influenced the price and the price lower than the normal price has been charged by the respondents – so revenue’s appeal is dismissed - Yet, the explanation to the Rule 6 Central Excise (Valuation) Rules, 2000, confines itself to adding value of the materials supplied free by the buyer. It does not extend to including interest notionally saved by the manufacturer on such value. - Hence, it is clear that the Rule itself acknowledges the fact that the ‘interest’ is not an additional consideration.
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