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of <h1>Tribunal: Duty not altered by post-credit note price change. Revenue appeal dismissed.</h1> <h3>Commissioner of Central Excise, Noida Versus M/s Bigesto Foods Pvt. Ltd.</h3> Commissioner of Central Excise, Noida Versus M/s Bigesto Foods Pvt. Ltd. - TMI Issues:Whether reduction in transaction value after issue of credit notes alters tax liability under Central Excise Act and Rules.Analysis:The appeal by Revenue questions if reduction in transaction value after credit notes issuance automatically changes tax liability under Central Excise Act and Rules. The respondent-assessee, a manufacturer of 'Colour Television and Chasis,' availed Cenvat credit for duty paid on inputs and capital goods. The Revenue observed that the respondent did not reverse Cenvat credit despite receiving credit notes for rate variation and discounts on inputs. Consequently, a demand of Rs. 41,16,461/- was made for the period 01/04/2002 to 31/03/2006. The Commissioner (Appeals) allowed the appeal citing a Tribunal ruling that upheld the admissibility of Modvat/Cenvat credit based on invoices, even if the transaction value was subsequently reduced.The Revenue contended that only duty payable under Section 3 of the Central Excise Act can be taken as credit under Cenvat Credit Rules. It argued that altered transaction value due to discounts through credit notes necessitated levying duty on the revised price, justifying the demand made. However, the Tribunal found no provision in the Act or Rules for automatic adjustment in duty payable upon alteration of transaction value. The Revenue failed to identify any such provision, leading the Tribunal to dismiss the appeal as frivolous. Consequently, the appeal by Revenue was dismissed, granting the respondent consequential relief as per the law.In conclusion, the Tribunal clarified that alteration in transaction value post credit notes issuance does not automatically affect duty liability under the Central Excise Act and Rules. The ruling emphasized the absence of legal provisions for adjusting duty payable based on revised transaction value. The Tribunal's decision to dismiss the Revenue's appeal underscored the lack of legal sanctity in the Revenue's argument, affirming the respondent's entitlement to relief as per the law.
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