2013 (12) TMI 164

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....ment with their customers which is called a Full Service Maintenance Agreement (hereinafter referred to as 'FSMA'). In terms of the said agreement, they charged 29 paise per copy and as and when any part of the photocopy develops a defect, the appellant would change the same free of cost. 3. During the relevant period, the appellant was changing the old and used photoreceptor drums, tonners, etc. The old photoreceptor drums were being brought back to the factory and were re-conditioned. Such re-conditioned drums were being sent to their customers. It is not necessary that the same old and used photoreceptor drums would be re-conditioned and sent to the same party. This was a continuous process. 4. A dispute arose between the appellant....

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....hem under an invoice to their depot from where they were being sent to their customer's premises for replacement. Inasmuch as no cost of the said goods was being recovered by them, there was no question of recovery of any excise duty. 7. While dealing with the contention of the appellant, the original adjudicating authority has observed that though it appears that the party has not passed incidence of excise duty to their customers but a deeper examination reveals that such recovery stands made by the appellant from their customers inasmuch as, they were collecting 29 paise per copy from their customers under the said agreement. Normal life of the drum is 50,000 copies for which the party collects Rs.14,500/- and the price of a new drum ....