2003 (3) TMI 110

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ontrol) Appellate Tribunal dated 23rd February, 1999. 2. Briefly stated the facts are :- The appellants are manufacturers of heavy electrical equipment and machinery which they make as per the specific requirements of customers. The Terms and Conditions of sale to the customer contains a warranty clause which provides for free replacement of defective parts within a period of 12 months to 18 mon .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ich is subsequently being replaced. It is submitted that there cannot be double levy of excise on the same part. We see no substance in this submission. The price charged for the machinery may include the element of 'complaint reserve'. However, at that time it is not known whether there will be any requirement to replace any part. In many cases, parts are not required to be replaced. When parts a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... acturers and dealers choose to offer such incentives does not mean that a good which is otherwise excisable, should be exempted from paying excise duty. When offering the incentive, the manufacturer or dealer is choosing to take upon himself the cost of that good. So far as the Revenue is concerned, that good remains excisable. 5. In this view of the matter, we see no infirmity in the judgment of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X