2018 (11) TMI 150

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....-2004. During these financial years, the appellant supplied goods to the Railways by availing the SSI exemption benefit under the relevant notifications. In terms of the price escalation clause in the Railway contracts the appellant received certain additional amounts in the 2004-05, for the goods cleared in earlier years. The additional duty which became payable was also paid by the appellant by including such additional amount as part of the turnover for the financial year 2004-05. But the department was of the view that the escalation amounts received in the year 2004-05, are relatable to the goods cleared in the earlier years and such amounts and hence are required to be added to the turnover of the appellant in the respective year when....

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....02 or 2003-04. (ii) He refers to Supreme Court decisions in the case of Commissioner of Central Excise, Pune Vs. SKF India Ltd. reported in 2009 (239) E.L.T. 385 (S.C.) and International Auto Ltd. Vs. Commissioner of Central Excise, reported in 2010 (250) E.L.T. 3 (S.C.). In these two decisions, the Apex Court as held that in cases where escalation amounts have been received subsequent, to the clearance the goods not only differential duty was payable, but also interest is payable from the date of original clearance of the goods. 6. The Ld. D.R. for the Revenue, also relied on decision of the Hon'ble Supreme Court in the case Steel Authority of India Ltd. Vs. Commissioner of Central Excise, Raipur, reported in 2015 (326) E.L.T. 450 (S....

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....ent therein pertaining to the goods cleared earlier. Hon'ble Apex Court observed as follows: "9. In the present case, it is not in doubt that the time when the goods were cleared, the price which was charged from M/s. Maruti and the duty was paid on the said price. No doubt, some additional amount is received thereafter, on account of price escalation. However, it is not coming on record as to under what circumstances such price escalation was given. No such case was set up by the Revenue that the price was understated or depressed at the time of clearance of the goods and the additional amount was received subsequently, by a suspicious kind of arrangement. Even when the inquiries were made, we are conscious of the fact that the responde....