https://www.taxtmi.com/caselaws?id=413586 A third-party payment received on cancellation of a supply contract was held includible in the transaction value of excisable goods under the Central Excise Act, 1944. The valuation scheme under section 4, read with Rule 5 of the Central Excise (Valuation) Rules, 1975, treats as assessable not only the price actually paid or payable, but also additional consideration payable by reason of, or in connection with, the sale. On the facts, the amount received from Honda India was treated as part of the business arrangement linked to the goods manufactured for that supply chain and as consideration flowing indirectly from the buyers. Central excise duty was therefore payable on the amount. en-us Wed, 13 Oct 2021 00:00:00 +0530 Mon, 18 Apr 2022 11:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=413586 A third-party payment received on cancellation of a supply contract was held includible in the transaction value of excisable goods under the Central Excise Act, 1944. The valuation scheme under section 4, read with Rule 5 of the Central Excise (Valuation) Rules, 1975, treats as assessable not only the price actually paid or payable, but also additional consideration payable by reason of, or in connection with, the sale. On the facts, the amount received from Honda India was treated as part of the business arrangement linked to the goods manufactured for that supply chain and as consideration flowing indirectly from the buyers. Central excise duty was therefore payable on the amount. Case-Laws Central Excise Wed, 13 Oct 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=413586