1999 (10) TMI 215 - AT - Central Excise

Summary

Issues involved: Interpretation of Central Excise duty on differential amount received by sugar mills after price fixation by Supreme Court.

In the judgment by the Appellate Tribunal CEGAT, Mumbai, the appellants, who are sugar manufacturers, were aggrieved by the Central Excise department's proposal to levy duty on the differential amount received by the sugar mills after a price increase for levy sugar as per the Supreme Court's judgment. The Tribunal considered the argument presented by the appellant's advocate, citing the Supreme Court's decision in MRF Ltd. v. C.C.E., 1997, which stated that a change in the price of excisable goods post-clearance does not impact the liability to Central Excise duty already accrued. The Tribunal also referred to the decision in Indo Hacks Ltd. v. C.C.E., 1986, emphasizing that duty is chargeable based on the price at the time of goods clearance, not on any subsequent price changes. Consequently, the Tribunal held that the increase in price post-clearance does not entitle the appellant to claim a refund of the excise duty paid initially. The Tribunal further ruled that the same principle applies when the price is increased post-clearance, affirming that the assessment price remains the one at which the goods were cleared, not the subsequently determined price. Therefore, the Tribunal allowed the appeal, setting aside the impugned order and providing for any consequential relief.