TATA TEA LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) This is an appeal at the instance of the assessee challenging the order passed by the Commissioner (Appeals) dated 22/23 -2 -2003.

(2.) The appellants who are manufacturers of packet tea sell the same through their various depots located at different places. In their price declarations they have claimed deduction of amounts on account of interest on receivables and collection charges from the assessable value. Their contention is that interest on receivables is an amount collected over and above the basic price of the goods, it would not form part of the assessable value of the goods. The same contention is raised in respect of collection charges also.

(3.) The Commissioner (Appeals) accepted the contention raised by the appellant that the interest on receivables and collection charges are in the nature of post manufacturing expenses and should not normally form part of the assessable value but relief was denied for the reason that these elements of expenditure were not known beforehand and therefore, not entitled to deduction.