9911796707
TMI Blog2006 (2) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... blic sector undertakings. The prices are fixed on the basis of tender and series of negotiations which normally take some months. The purchase orders are placed by M/s. Coal India Ltd. covering the period of one financial year. Therefore, irrespective of the date of the purchase, the effective date of purchase is from the first of April. Since the appellant is required to maintain uninterrupted supply of goods during the period of finalisation of the contract, the goods are cleared on the basis of the price fixed in the previous contract. If there is any upward revision of prices, the appellant is raising supplementary bills to recover the differential amount for the goods already supplied before receipt of the purchase order and then the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was still under negotiation. The price for the year 1999 relevant of the instant case was known only when the customer M/s. Singarani Collieries Company Limited placed the purchase order dated 21-9-1999 with retrospective effect from 1-4-99. Further, the appellant had already intimated the jurisdictional Superintendent and the Asst. Commissioner in their letter dated 31-3-1999 that the price of the goods to be cleared from 1-4-1999 was still under negotiation and hence the goods would be cleared on the basis of the previous year's contract price. When the contract was finalised for 1999-2000, the customers would release the purchase order with retrospective effect from 1-4-99 and in the case of increase in price the differential duty would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods are cleared the price is not finalized, the payment of duty is on the basis of the price in the previous contract, hence, we have to consider the price as provisional only. Consequently, when there is price escalation the appellants voluntarily pay the differential duty to the exchequer. Similar treatment should be meted out to the appellant by the Department. In other words, when there is a reduction in price the appellant is entitled for refund. This issue was subject matter of many decisions by Tribunal. This bench in the case of CCE v. Telk Ltd. (supra) by the learned advocate has held the following : Refund - Excess payment of duty - Reduction in the price subsequent to the clearance of goods - Agreement/Contract containing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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