2000 (9) TMI 192

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....mber (T)]. - M/s. Jalan Refractories Pvt. Ltd. are manufacturers of Refractory Bricks. They sell them to steel mills. The contract for supply specified that the appellant will get "bonus" in case the refractory bricks lasted beyond average 'heats'. It also provided for penalty and replacement in case the bricks failed before the average heats. In the impugned orders the Central Excise Officers hel....

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....ed the records and have considered the submissions on behalf of the appellant and the Revenue during the hearing today. We find that the provisions relating to bonus and penalty are entirely separate and are not connected to the agreed prices for the goods. The data produced by the appellant indicated a penalty of about Rs. 8 lakhs and a bonus of over Rs. 10 lakhs. From the facts of the case it is....

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....ot sustainable, penalty also cannot be sustained. The same is also set aside. The demand for interest cannot survive once the duty demand is set aside. That demand also, therefore, has to go. Thus, the appeal of the assessee is allowed in its entirety. 5. With regard to the Revenues' appeal, we find that the principle of valuation followed by the Commissioner was the one laid down by this Tribu....