2009 (9) TMI 852

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..... a Flexopack Pvt. Ltd. (VFP) are manufacturers of printed and laminated BOPP film. The goods they manufacture are packing material used to pack food articles etc. They use steel cylinders with copper coating engraved with the desired design for manufacturing BOPP films ordered by each customer. Scrutiny of the assessee s records showed that during the period 4/2001 to 3/2004 VFP had raised debit no .....

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..... ] (ii) Inox Air Products Ltd. v. CCE, Mumbai [2001 (134) E.L.T. 224] (iii) Spring Fresh Drinks v. CCE [1991 (54) E.L.T. 333] (iv) CCE, Belguam v. Praxair India Ltd. [2008 (223) E.L.T. 596] (v) Jindal Praxair Oxygen Co. Ltd. v. CCE [2007 (208) E.L.T. 181] (vi) Mysore Kirloska Ltd. v. CCE, Belgaum [2002 (141) E.L.T. 423] It is submitted that the contracts were oral. Apex Cour .....

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..... was wrongly imposed. 3. The Ld. Counsel for VFP reiterated the arguments in the appeal. The ld. JDR submits that the three identically worded undated certificates could not be accepted as pursuant to contracts. In the absence of contracts, the plea of liquidated damages was not valid. 4. We have carefully considered the records and the submissions by both sides. The Commissioner has noted as .....

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..... hem is includible in the value of BOPP films if the same is incurred by the buyer. However, if the same represents liquidated damages for short lifting the goods as mutually agreed, it would not be part of the assessable value in the light of the ratio of the decisions cited in support of the plea. In each of these cases there was a contract with provision for recovery of compensation in case of f .....

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..... ta cost of the cylinder reckoned with reference to the total number of pieces that could be manufactured with each cylinder before it is worn out. We cannot hold that the longer period does not apply unless these amounts are established to be liquidated damages. The matter is accordingly remanded for a decision afresh by the original authority. Needless to say that VFP shall be afforded an effecti .....

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