TMI Blog2000 (3) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... walled bearings, bushes, washers etc., which are liable to central excise duty on ad valorem basis. The appellants claimed, inter alia, deduction towards interest on receivables from the sale price for the purpose of arriving at the assessable value for levying Central Excise duty. The claim was on the ground that where there is time lag between the sale of the goods and the receipt of payment, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in support of their claim. They had submitted in the appeal before the Commissioner also that facts in the MRF case were that the goods were sold from the appellants' depots and the claim was for deduction of interest on receivables when interest was not separately charged. All the same, the Supreme Court held the interest on receivables to be eligible for deduction in its original MRF judgment re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt and Para 66 in the subsequent judgment which had been specifically followed by the Madras Bench also. These are reproduced below :- "16. Another head of deduction disallowed to MRF relates to interest on receivables (sundry debtors for sales). MRF has represented that this cost is inbuilt in the price and is incurred on account of the time factor between the time the goods are delivered and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st and expenses on sundry debtors or interest on receivables is an expense subsequent to the date of sale and removal or delivery of goods in our opinion MRF Ltd. would be eligible to claim deduction on this account." "66. The case of the assessee (Madras Rubber Factory) is that where the goods are sold to up-country wholesale buyers and payment are received quite some time later, it is indeed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to whether the interest is collected separately or forms part of the gross price. This being the correct legal position, the denial of deduction towards interest on receivables in the present case was not justified on the ground that the same was not being charged separately. The matter is, therefore, required to be re-considered by the jurisdictional authorities and suitable deduction allowed. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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