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2017 (3) TMI 767 - AT - Central ExciseValuation - welding electrodes - notional interest - whether notional interest accruable on advance is includible in the assessable value? - Held that: - Rule 6 of the Valuation Rules, 2000 contemplates for inclusion of any additional amount in the value of the goods sold if it is not included - where the assessee receives any advance payment from the buyer against the delivery of any excisable goods no notional interest shall be added unless the Central Excise officer has evidence to the effect that advance received has influenced the fixation of the price by way of charging lesser price from or by offering a special discount to the appellant buyer who has made the advance deposit. It is an admitted position in this case that appellant offered 5% cash discount to the dealers who made advance payment. On a specific query from the Bench as to whether the same 5% cash discount is offered to any other dealer who is not making any advance to make payment, Ld. C.A. fairly states that they did not extend this cash discount to those dealers who are not making advance payment. On this factual position we have to hold that Explanation 2 to Rule 6 categorically covers the issue as in the case in hand is against the appellant-assessee. Assessable value on which duty liability needs to be discharged is the after addition of the cash discount - appeal allowed - decided in favor of Revenue.
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