2011 (3) TMI 586

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....ay petitions for staying the operation of the impugned order of Commissioner (Appeals). However as we find that the issue involved is simple and appeals itself can be disposed off at the stage, we proceed to decide the appeals itself with the consent of the learned DR.   3. The respondents cleared their final product, in the ordinary course of their business and paid duty on the transaction value arrived in terms of Section 4 of Central Excise Act, 1944. However, subsequently they sought to enhance the assessable value and accordingly issued supplementary invoices to their buyers. They also paid duty on the said supplementary invoices.   4. As their buyers did not honour the revised enhanced price, the respondents filed refu....

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....nt in the case of CCE Pondicherry Vs. Southern Agrifurane Industries Ltd. reported in 2006 (205) ELT 39 (Mad.), wherein it was held that refund is admissible since the letter of the customer clearly states that they did not pay the amount of central excise duty by way of supplementary invoices. As such he observed that since the price revision has been turned down by the customer and no evidence of receipt of the price difference from the customer to the respondent has been brought on record, the assessee cannot be called upon to pay duty on the price escalation. He also observed that the refund under reference is not on the ground that the payment from the amount which was charged at the time of initial clearance has been reduced. On the c....

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....he removal, the assessee and the buyer of the goods are not related and the price is sole consideration for the sale, be the transaction value;   (b) ...   9. In terms of the above provisions it is seen that the assessable value is required to be adopted as the price of the goods sold by the assessee, for delivery at the time and place of the removal . Admittedly the respondents have adopted the said price at which the goods were sold by the assessee at the time and place of removal . It is only subsequently that they sought to charge some more price from their customers, who refused to pay the same to the respondents. As rightly observed by Commissioner (Appeals), it is not a case where the assessable value adopted at the t....