TMI Blog1992 (3) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... other products. The petitioners sell 70% of its goods at wholesale prices at the factory gate to various buyers on cash-cum-carry basis, no interest is either chargeable or charged on the money so collected from such buyers at the time of clearance of goods on the gate. However, in less than 30% cases the dealers do not make cash payment and the goods are delivered on different payment basis where the price is paid subsequently, at times with considerable delay, and on such overdues the petitioners charge normal interest. The Excise Department took the view that the interest charged on deferred payment is included in the assessable value under Section 4 of the Act of 1944. The Department raised this question by means of claim of the refund ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the manufacturers to the buyers in the wholesale trade for the delivery at the time of removal and for this purpose, the sale price is one, at which the goods are ordinarily sold in the course of wholesale trade and the price charged is the sole consideration for sale and buyer is not a related person. According to the respondents, the interest collected on the credit on delayed payment forms part of 'assessable value'. 5. I have given my earnest consideration to the aforesaid submissions. 6. The excise duty on the goods sold is chargeable in terms of Section 4 of the Act of 1944, the 'assessable value' of the excise goods is defined therein to be the price on which the goods are sold in the wholesale trade at the time and place of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were issued vide MF (DR 1) F. No. 312/1/75-CX-10, dated 8th August, 1975, clearly contained therein that the price mentioned in ditmition means the amount of money for which the goods are sold. In other words it means cash consideration but mere fact that credit is given for the payment of value of an article would not result in the amount ceasing to be a price. The illustration was also given under the instructions and the illustration reads as under :- "Assessee A charges Rs. 100/- per unit for his goods if the payment is made at the time of delivery but charges Rs. 102/- per unit if the payment is made after one month of the delivery, Rs. 100/- per unit will be the price of the goods if the extra charge of Rs. 2/- per unit is identifia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to prevent unnecessary harassment in appropriate cases and should quash the notice in case it comes to the conclusion that it is demonstrated from the facts that the proposed adjudication would be without jurisdiction. 9. I am in respectful agreement with the views expressed by the learned Judge of Karnataka High Court. Besides this, in the instant case the Appellate Authority had already decided inter se parties the question of levy of excise duty on the interest received on 30% goods sold on the basis of deferred payment. It is regrettable that the lower authority despite the decision of the higher authority in the hierarchy authorities, in identical situation issued the notice. The petitioners have unnecessarily been subjected to har ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctory gate and thus, the factory gate price is ascertainable which will be the normal prices as envisaged under Section 4 of the Act of 1944. It was clearly held that when the factory gate prices are ascertainable the excise duty has to be levied on that price. Thus, no ambiguity has been left and there was no difficulty in coming to the conclusion as to what is the 'assessable value' of the goods in respect of the products sold by the petitioner companies. I am clearly of the opinion that the demand-cum-show cause notices dated 29-4-1991 and 9-9-1991 are only calculated to cause unnecessary harassment to the petitioners and in no case is going to advance the cause of justice. 10. A tendency is growing in the Government departments, may b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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