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1998 (1) TMI 73 - SC - Central ExciseWhether notional interest on the interest free security deposit received should be considered for the purpose of arriving at the assessable value under the Excise Act by including interest at the rate of 12% per cent per annum on such security deposits? Held that:- The additional Collector was right in coming to the conclusion that Rule 5 of the Valuation Rules was not applicable in the present case as it was not shown that the price charged was not the sole consideration. When the appellants are not requiring all the dealers to give security deposit and it is only those who avail of credit facilities who are required to give the security deposit but get no discount or pay a reduced price then in such a case excise duty can be charged only on the uniform price paid by the dealers without any addition of notional interest. Appeal allowed.
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