TaxTMI 
TaxTMI 
2018 (8) TMI 1214
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the sleepers subsequent to removal of goods from the factory. In other words a certain price is fixed at the time of clearance of the railway sleepers which is subsequently varied depending upon various factors which are not known at the time of clearance. Price variation is as per formula given in the agreement. Whenever the assessee removed the goods from the factory, he paid duty as per the provisional price. After the final price is known, they in turn pay the differential duty if prices are enhanced. In the present cases, the price has actually been reduced in terms of the contract. Therefore they filed refund claims for the excess duty paid. These refund claims were rejected by the lower authorities relying on the case law of MRF Lt....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s calculated at the time of clearance from the factory gate. These are two rare occasions where prices actually fell. Therefore, they filed an application for refund. It is his contention that they have not sought provisional assessment under pressure from the departmental officers who want assessments to be kept final. It is his further contention that all refund claims were filed within normal time limit under Sec.11B. 4. Learned Departmental Representative on the other hand reiterated arguments made in the Order-in-Appeal and said that once the goods leave the factory gate, subsequent fluctuations of prices will not matter as far as the valuation rules are concerned as laid down by the Hon'ble Supreme Court in the case of MRF Ltd (supra....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... in the case of MRF Ltd that post clearance reduction in price does not evade the duty liability. I have carefully gone through the MRF Ltd case. This judgment was passed in a particular factual matrix. After the tyres were cleared from the factory gate, on advice from the Government, the tyre manufacturers reduced the prices of the tyres to relieve the pressure of inflation on the common man. They sought a reduction in excise duty on this account. The Hon'ble Supreme Court has held that once tax has been paid and goods are cleared from the factory gate, there is no question of varying that on basis of price variations post clearance. It is also found that this judgment was passed in the context of the valuation of goods under Section 4 of ....