TMI Blog2000 (12) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... E/2065/2000 relates to goods manufactured and cleared from the factory at, and is against the order of the Commissioner holding that the interest on advances received by the manufacturer from its buyer, short lifting compensation paid by the buyer and notional interest on the cost of land made available by the buyer to the appellant for it to set up its plant are includible in the assessable value of the goods supplied, oxygen and nitrogen. The third appeal E/3122/2000 by Kamal Kapoor, Manager of the assessee, is against the penalty imposed on him on the same ground. 2. The agreement between the appellant and Raymond Steel Limited, the sole buyer of the gas manufactured at its Nasik plant provided that if the buyer fail to take delivery o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision in Bhartia Cutler Hammer Ltd. v. CCE in which the concept of liquidated damages is set out. "4. Section 73 of the Indian Contract Act provides for compensation for loss and damage caused by breach of contract. The party who suffers by such breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arises in the usual course from such breach or which party knew, when making the contract, to be likely to result on breach. The parties may determine in advance, the amount of compensation to be paid on account of loss or damage caused by a breach of contract where the parties agree on a reasonable sum as compensation, it is regarded as "liquidated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an additional consideration. 5. The contention of the counsel for the appellant that in the absence of any evidence to show that consequent upon this advance there was depression in the price the notional interest cannot form part of the assessable value for which he cites the decision of the Supreme Court in VST Industries v. CCE - 1998 (97) E.L.T. 395 and numerous decisions of the Tribunal had accepted it. We have considered the departmental representative's answer that it has not been shown that the advance is for purchase does not appear either correct or relevance. The agreement between the parties is for purchase and that agreement provided for advance and that advance is to be adjusted from the purchase and that to from the period ..... X X X X Extracts X X X X X X X X Extracts X X X X
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