B.H.E.L. Vs. CCE

JUDGEMENT

(1.) When the application for stay came up for hearing, we found that the issue raised in this appeal is covered in favour of the appellant by earlier orders of this Tribunal therefore, the appeal itself can be disposed of. It is also noticed that pursuant to Committee on Dispute's Minutes of Meeting dated 26.3.1998 the appellant has deposited 25% of the demand. We, therefore, dispense with the condition of pre -deposit and proceed to dispose of the appeal itself.

(2.) The only issue raised in this appeal is whether the notional interest on advance can be added to the sale price. In the case of Commissioner of Central Excise, Jalpur Vs. Laxmi Engineering Industries and Anr., 2000 (37) RLT 270 it was held that advance taken was to ensure due performance of the contract and is not additional consideration. The above decision of the Tribunal was confirmed by the Supreme Court reported in 2003 (155) ELT A 164 in the case of the appellant itself, this Tribunal has taken similar view in Final Order No. 166/2001 -A dated 26.4.2001 and Final Order No.729/2001 dated 10.4.2001. We therefore, hold that notional interest on advance is not to be included in determining the assessable value. The order impugned is, therefore, set aside. The appeal stands allowed. There will be a further direction to refund the amount already deposited by the appellant pursuant to Committee on Dispute's Minutes of Meeting dated 26.3.98 forthwith.