M/S. A. INFRASTRUCTURE LTD. vs COMMNR. OF CENTRAL EXCISE, JAIPUR

The Supreme Court, while adjudicating appeals under Section 35L(b) of the Central Excise Act, 1944, held that interest on advances is not deductible from the sale price unless explicitly stated in the contract. The Court reaffirmed the principle established in Asst. Collector of Central Excise & Ors. vs. Madras Rubber Factory Ltd., emphasizing that excise duty is levied on the manufacturer regardless of payment delays. The Court upheld the Tribunal's decision that only interest specified in the invoice for a defined period is deductible, thereby rejecting the broader claim for interest on delayed payments.