Notification benefit on transfer of title upheld where supplier recovered price including tax component and divested ownership.

Entitlement to Notification No. 44/2001-C.E. (N.T.) turned on whether its conditions were satisfied on the facts. The Court noted that the supplier had recovered the price, including the tax component, and had thereby divested itself completely of title in the goods. In that factual setting, the Revenue's objection that the notification benefit was wrongly allowed had no basis. No substantial question of law arose, and the assessee's entitlement to the notification benefit was left undisturbed.

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Issues: Whether any substantial question of law arose from the Tribunal's order regarding entitlement to the benefit of Notification No. 44/2001-C.E. (N.T.) dated 26.06.2001, and whether the assessee's compliance with the notification conditions warranted interference.

Analysis: The appeals were founded on the contention that the benefit of the notification could not be availed unless its conditions were satisfied. On the facts noted, the supplier had recovered the price and, by such recovery including the tax component, had divested itself completely of title in the goods. In that factual setting, the Revenue's apprehension that the notification benefit had been wrongly allowed was held to have no basis. The Court also observed that any wider controversy could be examined in an appropriate case.

Conclusion: No substantial question of law arose for consideration, and the assessee's entitlement to the benefit of the notification was not disturbed.

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