2000 (12) TMI 675

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....hri Sanjeev Srivastava, JDR, for the Respondent. [Order per : C.N.B. Nair, Member (T)]. - The appeal is directed against duty demand of Rs. 1,33,000/- and penalty of Rs. 50,000/-. The appellants manufactured metal containers for several Industrial Companies. M/s. Sandoz India Limited is one of them. The appellants got into a contract for manufacture and supply of 15 lakhs metal containers to....

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....contended that the payment could be treated only in the nature of a deposit and no addition was required to be made. Reliance was placed on several decisions of the Tribunal [1999 (114) E.L.T. 720, 1998 (101) E.L.T. 86, 2000 (37) R.L.T. 270] etc. 2. The above contentions have been opposed by the learned DR stating that, in the facts of the present case, it is clear that the advance was a c....

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....arged from the buyer to that extent. 3. It is clear from the facts of the present case that the sale to Sandoz was on contract basis. It is clear from the letter dated 4th January, 1989 of Sandoz India that advance given by Sandoz had affected the price and the price was being lowered to the extent the assessee would have paid interest on the advance. From this, it is clear that the contra....