TMI Blog2004 (5) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... between the delivery of goods and the realisation of monies is deductible from the assessable value of the goods at the time of removal from the factory of the assessee and also excludes the bank charges included in the price on account of clearance of outstation cheques. The appeals stand allowed accordingly. - 5756-5759 of 2000 - - - Dated:- 5-5-2004 - S. Rajendra Babu, C.J.I. and G.P. Mathur, J. [Judgment per : S. Rajendra Babu, C.J.I.]. - These appeals are filed under Section 35L(b) of the Central Excise Act, 1944 against an order passed by the Customs, Excise and Gold (Control) Appellate Tribunal (hereinafter referred to as the Tribunal). In that proceeding the appellant raised two issues, namely, (i) whether the interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise duty is on the manufacturer of the goods. It is not depending on the issue as to whether the manufacturer gets the price of the goods from the dealer or not. So, the interest charged from the date of delivery till the realisation of the price should be understood with reference to the period fixed in the invoice. If the invoice provides a specific period up to thirty days for effecting payment, interest from the date of delivery till the expiry of that period of thirty days alone is deductible from the price mentioned in the invoice." 3.This part of the order is challenged apart from other aspects to which we will advert to a little later. 4.It is pointed out that this Court had occasion to examine the question as to the value o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and above the sale price of the goods. However, this aspect was not accepted by the Tribunal. It was held that if the assessee is claiming interest out of the price mentioned in the invoice, when the period for its payment is mentioned and when the invoice makes it clear that the sale is on credit, interest on the amount for the period of credit permitted must be a permissible deduction and it must be excluded from the price fixed in the invoice for finding out the assessable value. 6.The question whether the interest that is payable on the sale price that is not yet paid by the customer is built into the price structure or not and, therefore, should be deducted from the value of the goods needs to be examined. 7.This Court clearly st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xt we have to consider deduction of the bank charges and collection charges. We must make it clear that if the invoice price is the basis for valuation bank commission or interest charges payable to the bank in the account of the customer are definitely in the nature of post-manufacturing and post-clearing expenses and should be deductible from the assessable value. It cannot be stated that such expenses will form part of the sale price. The view taken by us finds support from the decision of this Court in Commissioner of Central Excise, New Delhi v. Vikram Detergent Ltd., 2001 (127) E.L.T. 641 (S.C.) = 2001 (2) SCC 417, which conclusion was arrived at by this Court after examining earlier decisions of this Court in Asst. CCE v. Madras Rubb ..... X X X X Extracts X X X X X X X X Extracts X X X X
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