2004 (4) TMI 334 - AT - Central Excise

Summary

Issues:
Refund claims in relation to goods supplied to BSNL rejected on grounds of reduction in prices due to liquidated damages and failure to prove duty not passed on to buyer.

Analysis:
The judgment by the Appellate Tribunal CESTAT, New Delhi, involved two appeals concerning refund claims related to goods supplied to BSNL. The refund claims were initially rejected based on the assertion that the reduction in prices by BSNL was due to liquidated damages, and the appellant failed to demonstrate that the higher duty amounts paid initially were not fully passed on to the buyer.

During the hearing, the appellants were absent but requested the appeals to be decided on merits. The tribunal proceeded to hear the learned SDR and subsequently issued the order.

The tribunal examined the price finalization letters from BSNL, which indicated that the original prices were provisional and were later finalized at a lower rate per kilometer. This evidence contradicted the claim that the price reduction was due to liquidated damages. Additionally, there was no basis for the assumption that the appellants had transferred the higher duty liability to the buyer. The records revealed that the purchase price paid by BSNL was all-inclusive, encompassing Central Excise duty as well. Therefore, any reduction in the all-inclusive price would naturally lead to a corresponding decrease in the duty amount claimable by the appellant from the buyer.

Based on the above analysis, the tribunal allowed the appeals, granting consequential relief to the appellants. It was ordered that the refund amounts be disbursed to the appellant within a stipulated period of four weeks from the date of receiving a copy of the order.