On account of the fact that the payments were number effected against delivery or within any specified period, the payments of the prices became delayed averaging between 3 to 12 months and, therefore, the appellant claimed deduction in respect of interest of such receivables calculated for the period between the date of removal till the date of realisation of payment.
The assessing authority, the appellate authority and Tribunal rejected the claim made by the appellant on the basis that the companytract did number specifically provide for payment of such interest on sales on credit.
These appeals are filed under Section 35L b of the Central Excise Act, 1944 against an order passed by the Customs, Excise and Gold Control Appellate Tribunal hereinafter referred to as the Tribunal .
The deduction so claimed was supported by Certificate of Chartered Accountant for the relevant period.
Deductions were also claimed in the price list filed from time to time.
In that proceeding the appellant raised two issues, namely, i whether the interest accruing on advances are deductible from the price or number, and ii as to deduction of the bank charges and companylection charges.
During the relevant period, the appellant manufactured and sold the goods principally to Government and Public Sector Undertakings.
