2007 (9) TMI 519

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....)     The appellant company is a manufacturer of PVC pipes; they were availing small scale exemption during the years 1996-97, 1998-99 and 1999-2000; they entered into rate contracts for supply of PVC pipes to Gujarat Water Supply & Sewerage Board; the contract was for a fixed price, which was inclusive of excise duty. (b)     Under the small scale exemption, different rates of duties were payable depending upon the slab of clearances i.e. During 1996-97, upto Rs. 50 lakhs, the rate was 10%, for clearances between Rs. 50 lakhs to Rs. 75 lakhs, the rate was 15%, and the rate of duty above Rs. 75 lakhs was 20%. (c)     The Original authority held that the appellant company have....

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....the paid duty to the excise department and therefore they are required to deposit the same with the department in terms of Section 11D. 7. We have carefully considered the submissions from both sides. As the assessee has availed the exemption available to small scale unit, they were paying at different rates during the course of each financial year, depending upon the actual clearances effected by them. In the normal course, when the rates depending upon value of clearances, the assessee would have collected the price and applicable rate of duty in which case, the sale price would be different depending upon the actual rate of duty during the course of year. The assessee has chosen to supply to their customer at a fixed price, in te....