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TMI Blog2016 (6) TMI 873X X X X Extracts X X X X X X X X Extracts X X X X ..... Seventy Three Thousand Nine Hundred and Twenty only) in terms of Section 11B of the Central Excise Act 1944 on the ground that their buyer M/s. BSNL deducted Liquidated Damage charges (LD charges) including excise duty from the price payable to the applicant towards the goods supplied, as the goods were supplied during extended delivery period and that the duty claimed in the subject refund is the excise duty element of the said LD charges. 1.1 The lower revenue authorities in their order rejected the refund of the appellant saying that Liquidated Damage charges are the liability of the assessee and it can not be deducted for arriving at the assessable value. 2. The appellant has been represented before this Tribunal by the learned advoca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... includes in addition to the amount charged as price, any amount that the buyer is liable to pay to, or on behalf of, the assessee, by reason of, or in connection with the sale, whether payable at the time of the sale or at any other time, including, but not limited to, any amount charged for, or to make provision for, advertising or publicity, marketing and selling organization expenses, storage, outward handling, servicing, warranty, commission or any other matter; but does not include the amount of duty of excise, sales tax and other taxes, if any, actually paid or actually payable on such goods." 5.1. In the light of above definition CESTAT's Larger Bench discussed the concept of "transaction value" given in Section 4(3)(d) of Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on a particular date and when there is delay in delivery, the price is reduced depending on the delay. As a result of above adjustments, the appellant has received lesser payment of transaction value. When the price at which the goods are transacted has to be taken, there is no question of any deduction. In the present case, due to the provision of liquidated damages, the price actually payable is reduced and it is the reduced price which is to be taken for Central Excise duty purposes in the light of the definition of transaction value.." 6. Considering the facts on record and the decisions quoted above especially the ratio of the CESTAT's Larger Bench decision in the case of Victory Electricals Ltd. (supra) and CESTAT, Bangalore's decis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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