2009 (4) TMI 829 - AT - Central Excise

Summary

Issues involved: Determination of duty liability on bonus received by the appellant in connection with the sale of fire bricks to M/s. VSP.

Facts and Considerations:
- Appellants received a "Performance Guarantee Bonus" from M/s. VSP for refractories withstanding specified heats.
- Appellants contended that they are not liable to pay duty on the bonus based on a specific decision of Hon'ble CEGAT.
- Show cause notice issued for short payment of duty on the bonus received.
- Adjudicating authority confirmed the demand, penalties, and interest, leading to the appeal.

Appellant's Argument:
- Appellant argued that the bonus amount should not be included in the sale consideration of refractory bricks.
- Contended that bonus is related to ladle management, a separate activity from the sale of bricks.
- Cited various judgments supporting their position.

Revenue's Argument:
- Revenue emphasized the inclusion of bonus amount in the transaction value based on the payment for performance of the bricks.
- Stated that the transaction value was brought into effect from 1-7-2000, making prior decisions cited by the appellant inapplicable.

Judgment:
- Issue: Whether bonus received for ladle management should be included in the value of bricks sold.
- Tribunal found that the bonus received post-clearance does not alter the value of goods already cleared and duty paid.
- Relying on previous decisions, the Tribunal ruled in favor of the appellant, setting aside the impugned order and allowing the appeal with consequential relief.