2022 (7) TMI 191

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....goods inter alia to Hero Motor Corp Ltd. The appellant was supplying automotive parts to M/s Hero Motor Corp under purchase order No.-HOEC160664 dated 20th April 2016, issued by the purchaser -Hero Motor Corp. Subsequently, Hero Motor Corp amended the said purchase order being Amendment No. 00001 dated 6th July 2016, with retrospective effect from 23rd April 2016, modifying the prices downwards. Debit note no. 24003999 dated 24th December 2016 was issued by Hero Motor Corp showing details of invoices which was revised due to aforementioned revision of prices. The debit note dated 24th December, 2016 was for an amount of Rs. 85,92,274.34/- for price deduction against product nos. 1026952, 1025606 and 1030961. The amount of Rs. 85,92,274.34/-....

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.... variation clause of the relevant contract subsequent to clearance of the goods, the claim, for whatever reason, cannot be allowed. Such fluctuation in price subsequent to clearance of the goods cannot affect the manufacturer's liability to pay excise duty. 5. It further appeared that appellant have passed on the incidence of duty to their customer-Hero Moto Corp. at the time of the clearance of the goods. As such, unjust enrichment clause is also attracted. Accordingly, SCN dated 22nd June 2017 was issued with proposal to reject the refund. The SCN was adjudicated on contest and the refund claim was rejected holding that the same was hit by unjust enrichment, vide Order-in-Original dated 19th July 2018. 6. Being aggrieved, the appellant ....

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....t of excise duty of Rs. 9,26,890.43/- is evident as follows: - Assuming difference in basic price= Rs. 100.00 Excise duty = 12.5% Cum duty price = Rs. 112.50 VAT/S.Tax= 3%= Rs. 3.375 Total (difference-in) price= Rs. 115.875 Excise duty element in debit note of Rs. 85,92,274.33= 8592274.33x12.5/115.875=Rs. 9,26,890.43 10. It is further urged that under the facts and circumstances that the downward revision of prices is not disputed and it is further admitted fact that the appellant have accepted the price variation and the debit note, and have accordingly given credit in its Books of Accounts to Hero Motor Corp. Thus, there is no question of unjust enrichment in the given facts and circumstances. It is evident that it is the appellan....

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..... 13. The learned DR appearing for Revenue relies on the impugned order. 14. Having considered the rival contentions, I find that there is no real dispute with respect to the facts and circumstances. In the course of hearing before the Tribunal, the learned Counsel for the appellant have reconciled the said debit note and its breakup with the invoices, as well as the detailed chart annexed to the appeal paper book. I further find that there is no good reason to doubt the transaction between the appellant and their buyer Hero Motor Corp Ltd. I further take notice that Hero Motor Corp Ltd, Haridwar Unit, to which the goods have been supplied is operating under 'Area Based exemption' during the relevant period. Thus, there is no chance of He....