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TMI Blog2009 (4) TMI 823X X X X Extracts X X X X X X X X Extracts X X X X ..... Bhilai Steel Plant (BSP in short). It is seen that M/s. VSP had agree to pay an amount as Performance Guarantee Bonus in case the Refractories withstand over and above certain specified heats. Revenue proceeded against the appellant on the ground that the amount received as performance guarantee bonus by the appellant is includible in the assessable value. Consequently, Show Cause Notices were issued for payment of duty. Penalties were also proposed. The Original Authority held that the performance guarantee bonus is includible in the assessable value. He also justified the invocation of the extended period. Consequently, an amount of Rs. 66,18,549/- was confirmed for the period from July, 2000 to June, 2005. Interest under Section 11AB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ior to present notices. The following case-laws were relied on : (a) Nizam Sugar Factory v. CCE, A.P. - 2006 (197) E.L.T. 465 (S.C.) (b) Hyderabad Polymers (P) Ltd. v. CCE, Hyderabad - 2004 (166) E.L.T. 151 (S.C.). The amendment brought into Section 4 with effect from 1-7-2000 would not have any effect on the issue. 4.2 The issue is no longer res integra and is settled in the following decisions of the Tribunal. (a) Indian Telephone Industries v. CCE, Cochin - 2004 (175) E.L.T. 384 (Tri.-Bang.) (b) Jalan Refractories (P) Ltd. v. CCE, Jaipur - 2001 (138) E.L.T. 327 (Tri.-Chennai) (c) MPR Refractories Ltd. v. CCE, Hyderabad - 2001 (129) E.L.T. 124 (Tri.-Chennai) (d) Burn Standard Co. Ltd. v. CCE, Coimbato ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en the parties on account of performance or otherwise of the goods, is not of any concern in regard to the sale price of the goods at the time of removal. Therefore, there was no justification for treating the bonus amount as part of the price of the goods and for demanding duty on that basis. The action is also patently unjust as it has been done without giving abatement for the penalties. Accordingly, the duty demand is set aside. 6.2 Further, in the MPR Refractories Ltd., decision of the Chennai Bench (supra), it has been held that the bonus earned for above average work and penalty for below average work for ladle management or refractory lining work undertaken in Customer s premises has nothing to do with manufacture of bricks and l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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