2007 (11) TMI 163

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.... (T)]. -1. Heard both sides. 2. Shri Chattopadhyay Ld. Consultant appearing for the appellants states that the period involved is 1-11-1999 to 28-2-2000 during which the appellants received some extra amount towards sale of Anhydrous Trough Mass to M/s. Vizag Steel Plant as bonus. He contends that duty has been paid on the impugned goods on the basis of the normal price and since the bonus receiv....

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....ing the cited case laws, we find that the contract between the appellants and the buyer includes a Performance Guarantee Clause. The said clause stipulates that a throughput of 40 MT has to be ensured with a quantity of 46 MT of Anhydrous Trough Mass. It also stipulates that in case the specified throughput is not achieved, there will be a penalty on the appellants. It further stipulates that in c....

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....n higher value inclusive of bonus for superior material supplied by them. We also hold that in the event of supply of inferior material, the assessment is required to be made on reduced value as stipulated in the contract of sale. 5. In the case before us, the demanded amount is the duty on the additional amount received by the appellants. Hence, confirmation of the said demand cannot be faulted ....