Benefits under Advance Licence includible in assessable value – Board communicates TIOL case law

By Vijay Kumar

It is great to know that officers in the Board do read case law reported by us. In a recent letter to the field, the Board stated,

I am directed to draw your kind attention towards judgment of Hon'ble Supreme Court in the case of CCE, Bhubaneshwar-II Vs. IFGL Refractories Ltd. reported by Taxindia Online (2005-TIOL-103-SC-CX) wherein it has been held that surrendering of advance licence in favour of the supplier of goods amounts to flow of additional consideration from buyer to seller [copy enclosed]. It is pertinent to mention that the ratio of this judgement is valid for both old and new Section 4.

You are requested to decide all pending disputes accordingly and to also ensure that necessary Notices are issued in all such cases to safeguard government revenue.

F.No. 6/3/2005-CX.I Dated : September 14, 2005