9911796707
TMI Blog2002 (8) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... . He has also imposed a redemption fine of Rs. 10,00,000/- and a penalty of Rs. 50,00,000/-. The relevant period is 1-4-1989 to 31-3-1990 and the show cause notice dated 11-11-91. 2.The appellant is a manufacturer of Cars falling under Chapter 87. They sell these cars to dealers, Government buyers like DGS & D, Police, buyers who make payment in foreign exchange, buyers against manufacturer's quota, fleet owners and other bulk buyers. The issue that is arising for consideration in this appeal is whether interest received on booking deposit taken from the buyers has to be added to the assessable value. While the appellant contents that the sale price to all buyers or class of buyers continued to be the same, that there is nothing to show th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1986. Supply of the car to the customers who made booking deposit in 1986, was over only in the year 1990. It is not disputed that throughout the period there is no difference in the price of the cars between customers who had made booking deposit and those who have not made booking deposit. But the contention raised by the learned DR is that it is not necessary that the interest received from the deposit results in suppressing the value of the car sold to only that class of customers who had made deposit. If the interest on deposit received from some of the customers will have effect on the price charged from all classes of the buyers, it is sufficient to add the interest to the assessable value. In support of his contention he relied on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al burden was placed on the dealer. The Board therefore decided to increase the dealer's commission. It was also submitted by the ld. Counsel that there is no merit in the contention that the discontinuation of the booking was the reason for increase in the price. It was in 1986 last time the customer deposit was received and the interest thereon was available with the company when the price was increased in 1989. As mentioned earlier, the cars which were booked in 1986 were delivered only in 1990. The above would clearly show according to the learned Counsel for the appellant that even when the interest on deposit was available with the assessee, the price had to be increased due to other reasons. It was also submitted that in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t report dated 20-3-1986 reads as :- "In the present case the booking of vehicle was an essential condition for sale of the vehicle, amount of Rs. 10,000/- received without bearing any interest for deliveries within one year and simple interest of 7% per annum for deliveries thereafter was thus additional consideration. The investments, made out of deposits so received, at higher rate of interest and compounded annually compared to no payment of interest for deliveries within one year and 7% simple interest thereafter resulted into yield of excess amount. Therefore, the differential amount of interest accrued was additional consideration which should have been taken into account while computing assessable value. So the assessable value re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer to draw the correct inference from the primary facts. It is no responsibility of the assessee to advise the Income-tax Officer with regard to the inference which he should draw from the primary facts." 8.Apart from the above there is no justification for delaying the show cause notice upto 11-11-91 even if the Revenue's contention that the assessee disclosed correct facts only on 18-8-89 is accepted. 9.In the light of the above discussions, we hold that there was no justification in the present case for the Revenue to invoke the larger period of limitation. Therefore, the show cause notice dated 11-11-91 is issued beyond the period of limitation and no demand can be raised on the basis of the above show cause notice. 10.In the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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