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2015 (10) TMI 908 - AT - Central ExciseValuation - Inclusion of amount pertaining to debit notes and testing - Held that - Issue is already decided by the Larger Bench of this Tribunal in the case of CCE, Raipur vs. Bhaskar Ispat Pvt. Ltd. reported in 2004 (3) TMI 102 - CESTAT, NEW DELHI . We also note that the amount corresponding to the debit notes is nothing but the amount the respondent-assessee has paid to the third party as per the direction of the customer. Thus the said amount has nothing to do with the transaction value - In view of the above position and keeping in view the decision of the Larger Bench in the case of Bhaskar Ispat Pvt. Ltd. (2004 (3) TMI 102 - CESTAT, NEW DELHI), the appeal filed by the Revenue is dismissed - Decided against Revenue.
Issues:
Interpretation of Section 4(3)(d) regarding assessable value for duty calculation. Analysis: The appeal involved a dispute where the Revenue contended that the amount paid for third-party testing should be included in the assessable value for duty calculation. The respondent-assessee argued that such testing was at the instruction of the customer, and the amount paid to third parties was recovered from customers through debit notes. The original authority confirmed the demand, but the Commissioner (Appeals) allowed the appeal, leading to the Revenue's appeal. The main ground of the Revenue's appeal was based on Section 4(3)(d) requiring the transaction value to be considered. Upon considering the submissions, the Tribunal referred to a previous decision by the Larger Bench in the case of CCE, Raipur vs. Bhaskar Ispat Pvt. Ltd. The Tribunal noted that the amount corresponding to the debit notes represented the payment made by the respondent-assessee to the third party as per the customer's direction. It was established that this amount was not related to the transaction value of the goods. Therefore, based on the precedent set by the Larger Bench decision in the Bhaskar Ispat Pvt. Ltd. case, the Tribunal dismissed the Revenue's appeal and disposed of the cross objections in the same manner.
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