CCE Vs. SAM INDUSTRIAL PUMPS CO. PVT. LTD.

JUDGEMENT

(1.) All these nine appeals filed by Revenue arise from a common Order -in -Appeal Nos. 435 to 442/96 (CBE) dated 21.6.1996 by which the learned Commissioner (Appeals) has set aside the order of the original authority and allowed the respondent -assessee's appeals.

(2.) Aggrieved by this order, the Revenue has come in appeal on the ground that the money does not come free in the market. In no business money is kept idle either. Therefore, when the fact of interest free deposit is proved, the consideration accruing to the persons receiving the deposit is proved ipso facto and, therefore, the burden shifts to the assessee to prove that the extra consideration accruing from the buyer of the goods has not influenced the price. Revenue has also relied on the Apex Court's judgement in the case of Metal Box India Ltd by which the Hon'ble Apex Court had held that interest on advances are to be included in the assessable value.

(3.) Heard Ld. DR Shri A. Jayachandran who, while reiterating the grounds, has submitted that the assessee has not kept the advance received from the customer in a separate account and has not kept the interest earned from such deposit to the account of the buyer. Under these circumstances the interest accrued on the advances has to be included in the assessable value.