TaxTMI 
TaxTMI 
2013 (11) TMI 1385
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....re of vehicle to M/s. Vehicle factory, Jabbalpur during October, 2010 to April, 2011. They filed refund claims on account that there was decrease in the price which took place retrospectively in terms of price variation clause contained in the contract and that they had issued the credit notes of the differential amount and the taxes to M/s. V.F.J. 3. The Assistant Commissioner rejected claim of refund on the ground that the assessee had not cleared the goods under provisional assessment. He observed that for the purpose of assessment, the price relevant is the price at the time of removal. Later on, the assessee cannot claim the refund merely as they had issued credit notes of the differential amount and the duty subsequent to clearance o....
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....rt in the case of MRF Ltd. 1997 (92) ELT 309 (SC) held that subsequent reduction in price would not entitle the assessee to claim refund and the SLP filed against this order was dismissed by the Hon'ble Apex Court. He further stated that the Apex Court has dismissed the civil appeal of Rajasthan Processors against the order of CESTAT, Special Bench, New Delhi in case of Rajasthan Processors Ltd. reported in 1994 (71) ELT 989 (CEGAT), in this case the Tribunal held: "it is not possible to interpret sub section 2 of Section 11C to accommodate such situations and to say that even when duty has been passed on to the customers at the time of clearance, the assessee can still claim refund under Section 11C(2) of Central Excises and ....
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.... provisions of Section 11B of the Central Excise Act, 1944. The Ld. Advocate has submitted that the Tribunal in its order dated 22/5/2012 in case of Commr. of Central Excise, Ghaziabad Vs. M/s. Mahavir Cylinders - 2013-TIOL-48-CESTAT-DEL allowed the appeal where price was reduced subsequently consequent to price reduction clause in the agreement. The Ld. Advocate has cited the order of the Hon'ble High Court of Rajasthan in case of A.K. Sprintex Ltd. Reported in 2009 (234) ELT 41 (Rajasthan) "wherein the court did not agree with the contention of the Ld. Counsel for Revenue that it cannot be assumed on the basis of credit note/debit note that incidents of duty was passed on is debarred". As regards non-production of documents....
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....essors (supra) the assessee had paid the duty consequent to issue of notification issued under Section 11AC of the Act, issued the debit notes and therefore the facts of this case are also distinguishable. Therefore, the facts of the case laws cited by the Revenue are not applicable to the present case. 9. I find that the issue of refund claim in case of price reduction in terms of the variation clause in the contract came up for consideration before the Hon'ble High Court of Bombay in case of M/s. Oriental Explosives (supra). In case of Oriental Explosives the assessee entered into agreements with M/s. Coal India for supply of explosives for the period 1/4/2000 to 31/3/2001, fixed by an agreement between two parti....
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.... buyer, in such cases refunds were allowed. It is evident from the above that there is no apparent contradiction and the various case laws cited by the Revenue and the Ld. Advocate for the appellant relate to different facts and circumstances of the case and therefore each case has to be examined on its own merits based on its own facts. I find that the Ld. Commr. (Appeal) had relied upon the letter dated 11/10/2011 of M/s. VFJ. A copy of the said letter was produced before the Bench. Commr. (Appeal) relying upon this letter alone allowed the appeal without discussing whether the documents called for from the appellants by the adjudicating authority were necessary to process their refund claims under the provisions of Section 11B of the A....