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2019 (1) TMI 661 - AT - Central ExciseValuation - depression of value of the product to the extent of the value of the Advance Licenses surrendered by the customers - deemed export benefits - issue of Advance Intermediate License - Held that - The issue is alraedy decided by Hon ble Supreme Court in the case of COMMISSIONER OF C. EX., BHUBANESHWAR-II VERSUS IFGL REFRACTORIES LTD. 2005 (8) TMI 112 - SUPREME COURT OF INDIA , where it was held that In pursuance of the Contract of Sale, there is directly a flow of additional consideration from the buyer to seller. The value thereof has to be added to the price - appeal dismissed - decided in favor of Revenue.
Issues:
1. Addition of surrendered value of the advance license to the assessable value of manufactured goods sold. Analysis: The case involves an appeal against an order passed by the Commissioner of Central Excise (Appeals), Mumbai-II, regarding the alleged depression of product value by the appellant in exchange for Advance Licenses surrendered by customers. The demand for recovery of differential duty, interest, and penalty was confirmed after adjudication. The issue revolves around whether the surrendered value of advance licenses should be added to the assessable value of goods sold. The Revenue argued that this issue is settled by previous Supreme Court judgments. The Tribunal noted that the Supreme Court had addressed this issue in the cases of IFGL Refractories Ltd. and Indorama Synthetics, where it was established that the additional consideration received from the surrender of licenses should be included in the price of goods sold. The Tribunal upheld the impugned order based on the Supreme Court's rulings, leading to the dismissal of the appeal. In conclusion, the Tribunal found no merit in the appeal, as the issue of adding the surrendered value of advance licenses to the assessable value of goods sold had been settled by previous Supreme Court judgments. The Tribunal upheld the order passed by the Commissioner of Central Excise (Appeals), Mumbai-II, based on the established legal principles derived from the Supreme Court decisions in IFGL Refractories Ltd. and Indorama Synthetics cases.
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