A. INFRASTRUCTURE LTD. versus COMMISSIONER OF CENTRAL EXCISE, JAIPUR

A. INFRASTRUCTURE LTD. versus COMMISSIONER OF CENTRAL EXCISE, JAIPUR

Interest on receivables due to time lapse between delivery of goods and realization of price, and bank charges on clearance of outstation cheques, are deductible from assessable value of goods when calculating excise duty, subject to investigation whether the price structure includes such interest.

Parties
Appellant: A. Infrastructure Ltd.; Respondent: Commissioner of Central Excise, Jaipur
Jurisdiction
India
Judgment Date
05 May 2004
Procedural Posture
Civil Appeal / Decision on Appeal Against Order of Customs, Excise and Gold (control) Appellate Tribunal
Outcome
appeals allowed
Legal Topics
Valuation Under Central Excise Act, Deduction of Interest and Bank Charges, Assessment of Excisable Goods
Taxation Indirect Taxes Valuation Under Central Excise Act Deduction of Interest and Bank Charges Assessment of Excisable Goods

Case Brief

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Parties

A. Infrastructure Ltd.

Appellant

Commissioner of Central Excise, Jaipur

Respondent

Procedural Posture

Civil Appeal / Decision on Appeal Against Order of Customs, Excise and Gold (control) Appellate Tribunal

Legal Issues

  1. 1 Whether interest accruing on advances is deductible from price for assessment value of goods
  2. 2 Whether bank charges and collection charges are deductible from price for assessment value of goods

Ratio Decidendi

Interest on receivables due to time lapse between delivery of goods and realization of price, and bank charges on clearance of outstation cheques, are deductible from assessable value of goods when calculating excise duty, subject to investigation whether the price structure includes such interest.

Court Disposition

appeals allowed

Orders

  • Order of the Tribunal modified; authorities to whom matter remanded directed to examine whether interest on receivables and bank charges are deductible from assessable value of goods at time of removal from factory.