2000 (6) TMI 248

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..... submitted that the contract with the Electricity Board, the buyer of the goods, is on the basis of delivery at their Thermal Power Stations. Therefore, from the payment received by the appellant, they incurred expenses towards freight, handling and other cost. Appellant submits that these expenses are eligible for deduction from the price received by them. With regard to liquidation damages it has been submitted that liquidated damages are deducted from the price due in view of the delay in making delivery. Appellant submits that these liquidated damages are also eligible for deduction while fixing assessable value as the amount received as price for the goods is worked out after disallowing liquidated damages by the buyer. With regard to i .....

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..... nt case. He submitted detailed calculation, which is available at page 24 of the appeal paper book. He also took us to the calculation sheet of the Accounts Officer (S.B.VI), which is available at page 21. He explained that the Electricity Board does not make reimbursement of Central Excise duty on the basis of the amount actually paid as duty by the appellant but itself works out the duty after making deduction for freight etc. Thus, excess duty paid on this amount has not been passed on. He also stated that with regard to deduction claimed on interest on receivables, the question of unjust enrichment cannot arise at all as the deduction is claimed to make the price received equivalent to the price at the time of removal. It is also submit .....

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..... as already held in the case of Bhartia Cutler Hammer Ltd. v. CCE, New Delhi 1998 (99) E.L.T. 436 (Tribunal) that such deduction is not permissible under Section 4 of the Central Excise Act, 1944. 4. From the position as indicated above, we are of opinion that the appellant's claim for deduction towards freight, handling charges and other elements as well as claim for deduction on account of interest on receivables are to be permitted and his claim for deduction on account of liquidated damages is not an eligible claim. We however observe that the matter is required to be remanded to the original authority for working out the actual amount of refund. Accordingly, the case is remanded for working out the refund amount and making payment. S .....

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