1996 (12) TMI 155 - AT - Central Excise

Summary

Issues:
1. Whether the refund amount paid to the appellants should be included in the assessable value or the price of the goods.
2. Whether the appellants are liable to pay the alleged excess refund amount as sought by the department.

Analysis:
1. The case involved a dispute regarding the refund amount paid to the appellants and whether it should be included in the assessable value or the price of the goods. The department issued a show cause notice alleging that the refund amount was includible in the assessable value, leading to an alleged excess refund. The appellants contended that the refund was correct as per the Supreme Court's direction and no reassessment was required. However, the department argued that erroneous refunds should be recovered as per the provisions of Section 11A of the Central Excise Act, 1944.

2. The Tribunal considered the arguments and referred to the judgment in the Bombay Tyre International case and the Karnataka High Court case of Polyflex (India) Pvt. Ltd. v. Assistant Collector of Central Excise. The Tribunal noted that the Supreme Court directed a fresh assessment in accordance with the Bombay Tyre International case, which emphasized computing the value of excisable articles with reference to the price charged by the manufacturer. The Tribunal also referred to the Karnataka High Court's decision in Union of India v. Alembic Glass Industries, which clarified the treatment of refund amounts in the redetermination of assessable value.

3. The Tribunal concluded that the refund amount paid to the appellants should be added to the price of the goods and not the assessable value. This decision was based on the principles outlined in the judgments cited, emphasizing that the refund amount should be included in the price for calculating the duty amount due. Therefore, the appeal was partly allowed on the condition that the duty amount due would be recalculated considering the inclusion of the refund amount in the price of the goods.

Conclusion:
The Tribunal ruled that the refund amount paid to the appellants should be included in the price of the goods for calculating the duty amount due. The decision was based on the directions of the Supreme Court and the interpretation of relevant provisions under the Central Excise Act. The appellants were partly allowed the appeal, subject to the recalculation of the duty amount due based on the inclusion of the refund amount in the price of the goods.