9911796707
TMI Blog1997 (12) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... .L. Bhat, President]. Appellant, engaged in manufacture of electrical control and switch gears filed price lists from time to time and clearing goods on payment of appropriate duty on the approved prices. In respect of a contract, appellant filed a price list in Part II and the same was approved and goods were cleared on payment of appropriate duty. The agreement between the appellant and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Collector (Appeals). 2. Ld. Counsel for the appellant contended that just as a price variation clause has the effect of increasing or reducing the originally agreed price and has consequent impact on assessable value, the agreement for payment of liquidated damages also has such effect on price and assessable value. According to him, since the amount of liquidated damages is deducted f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arises in the usual course from such breach or which party knew, when making the contract, to be likely to result on breach. The parties may determine in advance, the amount of compensation to be paid on account of loss or damage caused by a breach of contract whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed time for performance, and provided for breach of contract, and payment of liquidated damages. The mode of payment has also been stipulated by providing that the amount will be deducted from the invoice price. When the contract goes through price is payable. Compensation is payable to the buyer when there is a breach of contract. Damages or compensation cannot be regarded as price or part of pri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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