M/S. Sng Engineering Works … vs The Commissioner Of Central … on 8 June, 2001

ORDER

Shri G.A. Brahma Deva

1. This is an appeal filed by assessee. The short point to be considered in this case is whether notional interest on advances is to be included or not in the assessable value. We find that the order passed by Supreme Court in the case of VST Industries Vs Collector of Central Excise, Hyderabad reported in 1988 (97) ELT 395 (SC), holding that “notional interest on advance/security deposit taken from customer not addable to assessable value”. In these circumstances following ratio of the decision of the Supreme Court referred to above, we accept the appeal and accordingly the appeal is allowed.

(Pronounced and dictated in open court.)