2015 (10) TMI 357

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....Maruti Udyog Limited, Gurgaon, (hereinafter referred to as M/s. Maruti) to whom the assessee had been supplying these non-wooven carpets. The aforesaid product is exigible to excise duty and the assessee was clearing the product on the payment of excise duty as per the invoices raised on sale of this product to M/s. Maruti. It so transpired that the assessee received additional amount on account of price escalation during the period 1996-1997 to 2000-2001. However, this was not intimated to the Department nor any duty paid on the same. On coming to know of the aforesaid fact, the Department issued summons to the Director of the assessee to appear before the authorities and explain the nature of the aforesaid additional amount by way of p....

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....nded was that the escalation price which was received subsequently could not be taken into consideration. The CESTAT has accepted the aforesaid plea of the assessee and in the process relied upon the judgment of this Court in 'MRF Limited v. CCE, Madras [1997 (92) ELT 309 SC]. Against this order of the CESTAT, the present appeal is preferred. Though the notice of this appeal is duly served upon the respondent, nobody has put in any appearance on behalf of the respondent. In these circumstances, we have heard Mr. A. K. Sanghi, learned senior counsel appearing for the Revenue, and have gone through the records. Submission of Mr. Sanghi is that the judgment in the case of MRF Limited (supra) has wrongly been applied by the CESTAT.....