- (1.) The Appellant -Assessee herein is a registered manufacturer of lubricating oils and its allied preparations falling under Chapter sub -heading 2710.90 and 3403.10 respectively of the Schedule to Central Excise Tariff Act, 1985. It has been selling goods to its customers on cash sales basis as well as on credit. If the goods are sold on cash sales basis, i.e., against the delivery of goods, immediate cash payment is realised and the Assessee has been giving cash discount of 1.75 per cent. Insofar as credit sales are concerned, it receives the payment after the expiry of credit period given. The price which is charged by the Assessee from the customers is by uniform price. Insofar as credit sales are concerned, for the purpose of arriving at the transaction value, the Assessee is entitled to adjust the interest on receivable. Since that is known only at the end of the year, provisional assessment is carried out during the year when the goods are cleared from time to time and excise duty is paid thereupon. Thereafter, at the time of final assessment, the Assessee has been submitting documents in support of interest on receivables.
(2.) This happened for the period in question as well, which is April 1996 to December 1996. Vide letter dated 15 -4 -1996, the Assessee had requested the Assistant Commissioner of Central Excise, Division I, Nandanam, Madras, for assessment on provisional basis. It was specifically stated in this letter that the Assessee had given to its dealers various discounts for the period January, 1995, to December, 1995, as per discount scheme set out in Exhibit 'E' to the said letter and the main features of the said scheme were also disclosed in the letter. Acceding to the request contained in the letter, the Assistant Commissioner vide his communication dated 25 -6 -1996 informed that provisional assessment had been ordered Under Rule 9B of the Central Excise Rules, 1944, in respect of clearances made during the aforesaid period.
(3.) Thereafter, vide letter dated 30 -6 -1997, the Assessee requested for finalization of provisional assessment made during the aforesaid period. Along with this letter, the Assessee had also enclosed the certificate of its Chartered Accountant certifying the rebates, interest on receivables and sales tax (non -recoverable) during the period in question and on that basis carried out calculations. To say it precisely, interest on receivables was calculated at the rate of Rs. 0.563 per unit quantity and benefit thereof was claimed. This request of the Assessee was not accepted by the Assistant Commissioner, who issued Show Cause Notice dated 29 -1 -1998 in this behalf. The proposed move in the Show Cause Notice was thereafter confirmed vide Order -in -Original dated 17 -4 -1998. This order was upheld by the Commissioner (Appeals) as well as Customs, Excise and Gold (Control) Appellate Tribunal (hereinafter referred to as the Tribunal) [2007 (216) E.L.T. 30 (Tribunal)].;