1997 (12) TMI 227

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....ajiv Pathak, Divisional Manager, for the Respondent. [Order per : J.H. Joglekar, Member (T)]. - The respondents manufactured textile machinery. They had collected erection and commissioning charges which fact was noted by the Department at a later date. A show cause notice was, therefore, issued on 21-4-1989 for the period December, 1983 to June, 1988 proposing to levy duty such charges coll....

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.... the buyer did not pay the charges the warranty ceased to have force. In other words performance under warranty was conditional upon buyer making such payment. He relied upon the judgment of the Supreme Court in the case of M.R.F. Limited - 1995 (77) E.L.T. 433 (S.C.) whereby the warranty charge was not held as admissible deduction. Shri Pathak, on the other hand, submitted that where buyers were ....

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....writing." (emphasis supplied) The first part of the clause seems to support the case of the Revenue but the second part seems to negate the claim made in the appeal memorandum that erection and commissioning charges were only stated in different name for the warranty charges. This claim does not sustain in view of the categorical statement made by the assessee's Representative that in majority ....