2003 (7) TMI 148 - AT - Central Excise

Summary

Issues involved: Eligibility of the appellant for refund of excess excise duty paid for supplies of optical fibre cables to Department of Telecom.

Summary:
The appeal addressed the eligibility of the appellant for a refund of excess excise duty paid for supplies of optical fibre cables to the Department of Telecom. The appellant claimed the refund on the basis that the price for the supplies was settled after the removal of the goods from the factory and their supply to DoT. The lower authorities rejected the refund claim, citing that the relevant price for assessment is the price at the time of removal from the factory, and subsequent variations have no relevance. They also referred to previous decisions by CEGAT and the Apex Court. The appellant argued that the denial of refund was due to an erroneous understanding of the facts, emphasizing that the price was settled after the supply of goods, not as a post-sale reduction. Upon reviewing the records and submissions, it was evident that the price was decided after the removal and supply of the goods, not as a post-sale reduction. Consequently, the denial of refund was deemed unsustainable, and the appeal was allowed. The appellant was directed to be refunded the excess excise duty paid promptly.