TaxTMI 
TaxTMI 
2011 (3) TMI 414
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....er (Appeals) had rejected the refund claim of the appellant-assessee of Rs. 5,24,207/-. 2. Briefly stated, the facts of the case are as follows : (a) The appellant stock-transfer the goods to their depots from where the sales are effected. While clearing the goods from their factory the appellant discharges the duty liability, at the rate at which such goods are sold from the depot, at the time of removal of goods from the factory. (b) In the instant case the appellant had cleared the goods in the months of March/April, 2001 on stock-transfer basis to their depots on payment of duty as mentioned above. Subsequently, the appellants reduced their price w.e.f. 24-3-2001. Consequentl....
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.... excise duty. Accordingly, he held that once goods have been cleared form the factory for transfer to depot on the transaction value prevailing then at the depot, any subsequent change in price due to price revision should not have any effect resulting either in refund or demand. Accordingly, he rejected the refund claim of he appellant and the same was challenged before the Commissioner (Appeals). The Commissioner (Appeals) also held the same view and rejected the claim of the appellant. 3. The learned advocate for the appellants argues that the price reduction effected subsequently is in the nature of discount given to the buyers and, therefore, even if the discounts are given subsequently and not at the time of removal, they are ....
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....l, 2001, we had stock transferred the goods from factory to our Branch/Depot on payment of duty. Assessable value was computed on the basis of prevailing price list and duty was paid accordingly. However, we reduced the prices with effect from April 23, 2001. We enclose copies of said price lists for your ready reference. As a result of reduction in price from 23-4-2001, the goods, which were cleared from the factory before 23-4-2001, were sold from depot, at a reduced price. Therefore the assessable value, at Branch/Depot, was worked out on the basis of reduced price and excise duty was reworked thereon and accordingly was shown in the invoice raised at Branch/Depot. This means that the incidence of excise duty was not passed on to the cus....
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....rms of the agreement entered into between them and therefore the Tribunal held that the price being provisional, any reduction in the price later on should be taken into account for determining the final duty liability. Similarly, in the case of Ipca Laboratories Ltd., referred to supra, the decision was given in the context of provisional assessment. In the case of Orient Explosives Ltd. the initial payment of duty was made on a provisional basis as the assessee in that case had informed the department that they were paying excise duty on the basis of provisional price. In the case of H & R Johnson, the issue dealt with cash discount for prompt payment available and made known to all buyers. Similarly, in the case of Goodlass Nerolac Paint....