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TMI Blog2013 (6) TMI 509X X X X Extracts X X X X X X X X Extracts X X X X ..... rt dismissing the appeal against the decision in the case of Sangam Processors (Bhilwara) Ltd. (1993 (2) TMI 211 - CEGAT, NEW DELHI). This was not a case of goods cleared under a price variation clause but was in the context of a Notification issued under Section 11C of Central Excise Act. The decision in the case Grasim Industries [2011 (8) TMI 689 - SUPREME COURT OF INDIA] relies on the decision in the case of Sangam Processors (Bhilwara) Ltd. Since the matter in relation to contracts involving price variation clause and where the buyer adjusted the excess price paid on certain clearances in the price of later clearance has been specifically examined in the case of Universal Cylinders and held in favour of assessee and affirmed by Suprem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E/2691/05 BPCL 1-7-2009 to 31-10-2000 Rs. 6,52,169.65 (Rs. 1,88,648.50 time-barred) 15-12-2000 The Assistant Commissioner rejected the claims of refund on the ground that reduction in price subsequent to clearance of goods from the factory cannot result in a reduction of excise duty to be paid. The Adjudicating Authority relied on the decision of MRF Ltd. v. C.C.E. - 1997 (92) E.L.T. 309 (S.C.) and also the decision of the Tribunal in Hindustan Wires Ltd. - 2003 (151) E.L.T. 679 (Tri.). Further, it was held that the claim was barred by limitation of time. It was also held that refund will result in unjust enrichment. However, prima facie only part of the claims are hit by unjust enrichment. The reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. There are two issues to be decided in these appeals. These are,- (i) Whether any refund can be granted to an assessee in a situation where assessments were not made provisionally but the price of excisable goods are revised downwards after clearance of goods as per price variation clause which was in existence in the contract under which goods were being cleared and the buyer adjusted the amount from the sale price to be paid on goods subsequently sold. (ii) Whether there is unjust enrichment is involved in granting such refunds. 7. Issue-I 7.1 On this issue, Revenue relies on the following decisions : (i) MRF Ltd. v. C.C.E. - 1997 (92) E.L.T. 309 (S.C.) (ii) Hindustan Wires Ltd. v. C.C.E. - 2003 (151) E.L. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this issue Revenue relies on the following decisions : (i) Sangam Processors (Bhilwara) Ltd. v. Collector - 1994 (71) E.L.T. 989 (Tribunal) affirmed by Supreme Court in 1994 (70) E.L.T. A182. (ii) Grasim Industries (Chemical Division) v. C.C.E. - 2003 (153) E.L.T. 694 (Tri.-LB.) affirmed by Apex Court in 2011 (271) E.L.T. 164 (S.C.); 8.2 The Respondents rely on the following decisions : (i) Universal Cylinders Ltd. v C.C.E. - 2004 (178) E.L.T. 898 (Tri.) - affirmed by Apex Court in 2005 (179) E.L.T. A208 S.C.; (ii) Rajasthan Cylinders and Containers v. C.C.E. - 2004 (166) E.L.T. 474; (iii) Rajasthan Electronics Instrumentation Ltd. v. C.C.E. - 2006 (200) E.L.T. 324 = 2008 (12) S.T.R. 541. (iv) Metal Forgi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 11C of Central Excise Act. The decision in the case Grasim Industries relies on the decision in the case of Sangam Processors (Bhilwara) Ltd. Since the matter in relation to contracts involving price variation clause and where the buyer adjusted the excess price paid on certain clearances in the price of later clearance has been specifically examined in the case of Universal Cylinders and held in favour of assessee and affirmed by Supreme Court this decision has to be adopted in this case. 8.6 In the matter of second aspect, that is, whether the buyer had taken Cenvat credit on the initial excise duty paid, the matter has not been examined by the adjudicating authority at all. In the third case the adjudicating authority has al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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