2014 (11) TMI 1009

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....to the Government part of the sugar stock as levy sugar. Excise duty payable on such sugar was less. Even the price the Government paid to the appellant on such sugar was less. The Directorate of Sugar, New Delhi release order dated 30-9-97 and 27-10-97. As per the same, the appellant cleared 15681 Quintal sugar from their stock of levy sugar and paid central excise duty at the rate of Rs. 52/per quintal (that was the rate applicable then). Subsequently, Government treated this sale as free sugar sale whereby the Government admitted its liability to pay more amount to the appellant. Appellant received additional consideration in 1999 but appellant did not pay additional excise duty. It is in 2002 for the first time, the department issued sh....

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....old by the assessee, for delivery at the time and place of the removal, the assessee and the buyer of the goods are not related and the price is the sole consideration for the sale, be the transaction value; (b)     in any other case, including the case where the goods are not sold, be the value determined in such manner as may be prescribed, (2) The provisions of this section shall not apply in respect of any excisable goods for which a tariff value has been fixed under sub-section (2) of Section 3. (3) For the purpose of this section - (a)     "assessee" means the person who is liable to pay the duty of excise under this Act and includes his agent; ....

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.... charged as price, any amount that the buyer is liable to pay to, or on behalf of the assessee, by reason of, or in connection with the sale, whether payable at the time of the sale or at any other time, including, but not limited to, any amount charged for, or to make provision for advertising or publicity, marketing and selling organization expenses, storage, outward handling, servicing, warranty, commission or any other matter; but does not include the amount of duty of excise, sales tax and other taxes, if any, actually paid or actually payable on such goods." 4. By no stretch of imagination the submission at bar can be accepted that transaction value was restricted to price which was paid to the appellant at the time of deliver....