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TMI Blog2019 (9) TMI 1267X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot extend any such relief. The Department as a case on merits and the appellants are liable to pay duty for the normal period - the case remanded to the Original Authority to compute the demand for normal period which shall be paid by the appellants - appeal allowed partly by way of remand. - E/148/2009-DB - Final Order No.20846/2019 - Dated:- 27-9-2019 - MR. S.S GARG, JUDICIAL MEMBER AND MR. P. ANJANI KUMAR, TECHNICAL MEMBER For the Appellant : Mr. Ravi Raghavan, Advocate For the Respondent : Mr. K. Murali, Superintendent (AR) ORDER The Appellants, M/S. Mysore Polymers Rubber Products Pvt. Ltd, are engaged in manufacturing automotive tubes on job work conversion basis for M/s CEAT and M/s Good Year. The appellants were providing periodical costing details of the inputs supplied for manufacture of tubes, for a particular period, subsequent to the completion of the period; and were adopting this costing value for future clearances. The appellants submitted to the authorities that the assessments of M/s CEAT were provisional; they were not in a position to indicate value at the time of clearances and that appellant s clearan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revious year; they have paid duty correctly as the circular as the exact values were given by their principals at a later date only. Due to this method, they have paid excess duty of ₹ 31, 40,594 in respect of clearances to M/s Good Year while they short paid ₹ 8, 17,860 in respect of M/s CEAT. Even after adjusting, an amount of ₹ 23, 22,734 is due to be refunded by them. Honorable Supreme Court in the case of Divya Enterprises Ltd 2003 (153) ELT 497 (SC) accepted such adjustment. Tribunal followed the ratio in Vinir Engineering Pvt Ltd 2004(168) ELT 34(Tri-Bang) in other cases. He also placed Reliance on the following decisions: (i). Essar Steel India Ltd vs. CCE, Raipur 2016-TIOL-2752-CESTAT-DEL (ii). Jindal Steel and Power Ltd vs. CCE 2016-TIOL-3079-CESTAT-DEL (iii). Tilrode Chem Pvt. Ltd. vs. CCE Bangalore - 2011 (264) E.L.T. 306 (Tri. - Bang.) further affirmed by Hon ble High court of Karnataka - Commissioner vs. Tilrode Chem Pvt. Ltd. - 2015 (317) E.L.T. A190 (Kar.) (iv). ubiliant Organosys Ltd. vs. Commissioner - 2015 (38) S.T.R. 1230 (Tribunal) 2.2. Learned Counsel for the appellants further submits that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncerned, they should get the benefit of the Resolution of the Board of Directors dated 2-2-1979, which revised the value of the goods after they had already been cleared from the factory. We agree with the Collector that once the correct assessable value has been declared by the assessee and the goods cleared from the factory, any subsequent reduction in prices to boost the sale of goods, cannot be a matter of concern for the Central Excise in determining the correct assessable value or even for determining the valuation for purposes of claiming exemption. (ii). Apex Court in the case of MRF 1997 (92) E.L.T. 309 (S.C.) held that fluctuation in prices subsequent to clearances of goods not to effect liability to the Excise duty. Apex Court further, in the case of SAIL CCE , Raipur 2015 (326) E.L.T. 450 (S.C.) held that the principle laid down in MRF Ltd. would continue to prevail. (iii). Tribunal in the case of Finolex Cables Ltd Vs CCE, Pune-I 2011 (270) ELT 81 (Tn. - Mumbai) held that 5.2. In the present case it is a clear and simple case of price reduction after clearance of goods from the factory. It is not a case of any discount being given to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the quantum of sales. 5. Vide above Circular, CBEC clarified in Para 7 as follows: 7. For this it will be necessary for the music company to supply to the job-worker the data relating to royalty payment and the wholesale price of each CD, the cost of the inlay cards, jacket, jewel box and other material supplied free of cost. Since net sales value and total royalty payment for the current year will not be available with the music company, duty should be determined on the basis of figures for the previous year. Till the figures for the previous year are provided assessments should be done provisionally. Assessments should be finalized immediately after the figures for the previous year as remade available. 6. It can be seen that the Circular though provides for finalization of values at a later date, essentially suggests provisional assessment in such cases. The appellants contend that they have approached the jurisdictional authorities for provisional assessment on a regular basis over the years. However, their request was not exceeded to by the authorities. Whatever be the Department s reason for not accepting provisional assessment, the ratio of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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