2014 (8) TMI 1031

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....pellants are engaged in the manufacture of Electrical Distribution Transformers and 99% of the transformers manufactured are sold to various Electricity Supply Companies (ESCOMS). M/s. Chamundeswari Electricity Supply Corporation, Mysore (hereinafter referred to as M/s. CESC) had issued Purchase Orders No. 160, 161 and 162 dated 9-10-2006. The prices indicated in the Purchase Orders are provisiona....

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.... Learned counsel for the appellants relied upon the decision in the case of Crane Betel Nut Works Ltd. reported in 2007 (210) E.L.T. 171 (S.C.) to submit that in the cases like this, refund would be admissible. He also relied upon the decision in the case of Sudhir Papers Ltd. v. Commissioner of C. Ex., Bangalore-I [2012 (276) E.L.T. 304 (Kar.)]. 3. In this case, the assessee had paid d....

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....e of de-escalation of prices and they had already collected differential duty. It is also admitted in the Order-in-Original that the party, M/s. CESC makes payment in the running account and as and when there is de-escalation of prices, automatically adjust such reduction in the value as well as duty in the running account. It was also submitted that as decided in the case of CCE v. TVS Suzuki Ltd....

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....4 (Kar.), Hon'ble High Court of Karnataka considered the very same issue and came to the conclusion that if credit notes are issued and benefit passed on to the customers, the assessee is entitled to refund of the same. However, we find that decision in the case of Sudhir Papers Ltd. (supra) was not cited before the Tribunal. Since the issue is covered by decision of the Hon'ble High Court of Karn....