9911796707
TMI Blog2013 (12) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... s places in India, other products like semis, defective/rejected iron and steel products and cuttings of iron and steel products are directly sold from respondent's plant as to buyers selected by tendering process. One of the conditions of the tenders for sale of defective/rejected material, issued by the material Sales Department is that on receipt of the sale other the buyer shall deposit the amount as per details indicated in the sale order by demand draft, the payment shall be made within 28 days from the date of sale order or within the time as stipulated in the sale order and that if the date of payment is extended on request of the buyers, the buyer shall be liable to pay a 'ground rent' at the specified rates. If the payment is made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner (Appeals), the Commissioner (Appeals) vide order-in-appeal dt. 18.07.2005 set aside the Additional Commissioner's order and allowed the appeal, on the ground that while the original Adjudicating Authority has treated the amount being charged as 'ground rent', as storage charges and on this basis includible in the assessable value, while a reading of Clause 11 of the tender indicates that amounts being collected are the charges of delayed payment and there is nothing to suggest that these are storage charges and that in terms of Apex Court's judgment in the case of Union of India Vs. Bombay Tyres reported in 1983 (17) ELT 329(SC), the amount paid on account of delayed payment is not includible assessable value. 1.2 Against this or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cause Notice itself refers to para 11(b) of the "terms and conditions for sale of material by tender from the stores department" and on the perusal of the same, it is clear that the amount being charged as 'ground rent' is for delay in making the payment by the buyers for the goods sold to them. This delay is counted from the date of sale order. The customer is expected to make the payment for the goods purchased by him within the period of 28 days from the date of sale order and if there is delay in making payment beyond 28 days, amounts at the rates varying from 0.5% of the sale price to 3.25% of the sale price are payable depending upon the period of delay. We do not find any basis for the Department's plea that the 'ground rent' is the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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