9911796707
TMI Blog2017 (5) TMI 448X X X X Extracts X X X X X X X X Extracts X X X X ..... reference to the compensation amount received by the appellant. Such amounts cannot be considered as additional consideration for the goods actually sold - similar issue decided in the case of JINDAL PRAXAIR OXYGEN CO. LTD. Versus COMMISSIONER OF C. EX., BELGAUM [2006 (8) TMI 461 - CESTAT, BANGALORE], where it was held that the compensation paid by the buyer to the assessee at previously agreed rate on account of the former's failure to lift the agreed quantity of excisable goods [Nitrogen etc.] was in the nature of liquidated damages for breach of contract, not includible in the assessable value of the goods. Appeal allowed - decided in favor of appellant. - APPEAL NOS. E/486/2010 & E/55460/2013 - FINAL ORDER NO. 50475-50476/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompensation for non lifting of the goods, produced by them, as per their agreement with their customers, and that they had not paid any duty on such charges as the same are in the nature of liquidated damages which are not chargeable to any Central Excise duty. 4. Commissioner in the impugned orders held that according to the agreement entered between the appellant and M/s. Eicher Motors Ltd., minimum rate of return is guaranteed to the appellant by giving compensation towards non lifting of goods produced by the them, As per their agreement, the same is also shared between them in case the ROE is not achieved and it is attributable to reduction in cost of manufacture of the components due to certain factors as specified. Hence the compe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rties. Accordingly he pleaded that the appeals may be allowed. 10. Ld. DR supported the orders passed by the Commissioner. 11. The dispute revolves around the amounts received by the appellant from M/s. Eicher in terms of the agreement entered into by the two parties. Since the appellant's plant was put up primarily to cater to the supply of components for M/s. Eicher, in terms of the agreement, M/s. Eicher is obliged to place orders for a minimum quantum of goods. The appellant is entitled to compensation for non lifting of he goods produced by them as per their agreement. Revenue has taken the view that such payments received are in connection with the supply of the components and hence the value of the components will have to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncluded in the assessable value vide Jindal Praxair Oxygen Co. Ltd. v. CCE, Belgaum [2007 (208) E.L.T. 181 (Tri. - Bang.)] = 2006-TIOL-647-CESTAT-BANG . In the case of Inox Air Products Ltd. v. CCE [2001 (134) E.L.T. 224 (Tri. - Mum.)] also, it had been held that the compensation paid by the buyer to the assessee at previously agreed rate on account of the former's failure to lift the agreed quantity of excisable goods [Nitrogen etc.] was in the nature of liquidated damages for breach of contract, not includible in the assessable value of the goods. It had been held to the same effect, in respect of oxygen gas, in the case of CCE, Jamshedpur v. Bhagwati Oxygen Ltd. [2000 (117) E.L.T. 647 (Tribunal)]. The ratio of these decisions were al ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
