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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 ..... , Advocate : For the Appellant Shri Mohd Yusuf, AR: For the Respondent ORDER Per: ASHOK K. ARYA The matter concerns with the rejection of refund claim for the duty paid in excess on account of Liquidated Damages which was deducted from the invoice price. The appellant namely M/s. Priyaraj Electronics Ltd. Bangalore filed an application for refund of excise duty of ₹ 1,73,920/- (Rupees One Lakh 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 extende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has been defined in Section 4(3)(d) of Central Excise Act 1944. The definition of transaction value given in Section 4(3)(d) has been referred to by CESTAT s Larger Bench decision in the case of Victory Electricals Ltd. (supra) in paragraph five, which is given below: 5. Clause (d) of Section 4(3) defines the expression transaction value as follows: means the price actually paid or payable for the goods, when sold, and 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 prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alore (supra) has held that duty is payable on the price arrived at by taking into account the liquidated damages and duty paid in excess on this account is refundable. CESTAT, Bangalore in this decision in para five observed as under: 5..We find that the transaction value represents price actually paid or payable for the goods. In the present case, even though a price is fixed for the goods, as per the contract the goods should be delivered 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 dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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