TMI Blog2005 (6) TMI 384X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 116/2004-C.E., dated 29-9-2004, passed by the Commissioner of Central Excise (Appeals II), Bangalore. As the issue involved in these appeals are common, they were taken up together for hearing and are being disposed of as per law. 2. The brief facts of the case are as under :- (a) Appeal No. E/922, 923/2003 - The appellants are manufacture of car air-conditioners and radiators which are supplied to M/s. Toyota Kirloskar Motor Ltd. (hereinafter referred to as TKML for short). The short point involved in these appeals is whether the interest on advance received from M/s. TKML for supply of dies and moulds which were imported by the appellants and used in the manufacture of the goods supplied to TKML is includible in the assessabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Commissioner in respect of the same appellants in the similar matter. The Joint Commissioner has held that the notional interest accrued on the cost of moulds and dies received free of cost by the appellants from their buyer is held as includible in the assessable value of the goods manufactured and cleared by the appellants. He demanded a total duty of Rs. 20,68,740/-. Interest under Section 11AB was demanded. Penalty of Rs. 1,00,000/- was imposed under Rule 25 of the Central Excise Rules, 2002. 3. Shri K.S. Ravi Shankar, learned Advocate appeared for the appellants and Shri R.N. Viswanath, learned SDR for the Revenue. 4. The learned Advocate adduced the following points :- (i) The appellants imported the moulds and dies. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he instructions scrupulously. (iv) Further, learned Advocate contended that as per the Central Excise law, transaction value does not include the financing charges. The legislature has taken a conscious decision to exclude financing charges from the transaction value. This is very clear from the fact that when the new Section 4 was introduced, the draft bill contain the amount charged for financing as can be seen from the proposed definition of the transaction value. But while passing the bill, the financing charges were omitted. From this, it is very clear that the legislature has consciously not included in the financing charge in the value. In these circumstances, the interest accrued on the advance received for dies and moulds is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... moulds were received from TKML and used in the manufacture of goods supplied to TKML. There is a clear-cut findings by the adjudicating authority that the cost of the dies and moulds has been amortized and included in the assessable value of the goods cleared to TKML. This in accordance with the instructions issued on the subject and also in consonance with the Central Excise law. There is no authority or legal provision to add the interest accrued on the advance given by TKML to be included in the assessable value of the goods cleared to TKML. We are in agreement with the learned Advocate that the legislature has consciously excluded financing charges from the scope of transaction value. In these circumstances, the duty demand to the tune ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
