TaxTMI 
TaxTMI 
2005 (8) TMI 112
X X X X Extracts X X X X
X X X X Extracts X X X X
....ar price. They thereafter entered into four contracts dated 9th September 1993, 11th July 1994, 24th February 1995 and 16th June 1995 to supply refractories to the said M/s. Visakhapatnam Steel Plant. For the supply of refractories under these four contracts the Respondents availed of the "Duty Exemption Scheme" contained in Chapter VII of the Export and Import Policy, 1992. It must be mentioned that in order to enable the Respondents to avail of the Duty Exemption Scheme M/s. Visakhapatnam Steel Plant surrendered the Advance Licences they held for import of refractories. Against such surrender the Respondents were issued Advance Intermediate Licences for import of inputs. The Respondents could thus import the inputs without payment of cust....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... In these circumstances it cannot be said that any additional consideration has flown from VSP to the appellant, which is a condition essential for discarding the contract price between the buyer and the seller." 4.Before the Tribunal there was also a controversy regarding the granting of deductions on account of Central Excise duty and Central sales tax. There also the Tribunal has held in favour of the Respondents. Before us the Appellants have not made any submissions on those points. 5.Thus, the only question for consideration is whether the benefit gained by the Respondents by reason of M/s. Visakhapatnam Steel Plant surrendering its licences and on such surrender the Respondents being issued licences, is additional consideration....
X X X X Extracts X X X X
X X X X Extracts X X X X
....,000/- per MT 8. Thereafter, by a letter dated 2nd March 1993 the Respondents made a revised proposal wherein it is, inter alia, stated as follows :- "As per the Export & Import Policy for 1992-97 under Chapter 10, you can procure the goods against your Advance Licence from domestic suppliers. If you utilize your Advance Licence for this purpose, no Excise Duty and Sales Tax will be charged to you. For the domestic company the sales against your Advance Licence will be treated as 'Deemed Export'. Keeping this in mind, we now propose that instead of selling Advance Licence to us you place your order on us against your Advance Licence for which applicable rates will be as follows." Monoblock Stopper @ Rs. 3,085/- per pc. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Visakhapatnam Steel Plant that the Licences were made available to Respondents. The Export and Import Policy had nothing to do with the arrangement/contract under which the Licences flowed from the buyer to the seller. At the costs of repetition it must be mentioned that had the Respondents had Advance Intermediate Licence on their own i.e. without M/s. Visakhapatnam Steel Plant having to surrender its Licences for the purposes of the contract, then the reasoning of the Tribunal may have been correct. But here, in pursuance of the Contract of Sale, there is directly a flow of additional consideration from the buyer to seller. The value thereof has to be added to the price. We are thus unable to accept the broad submission that where partie....