TaxTMI 
TaxTMI 
2001 (10) TMI 153
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..... The appellant is engaged in the manufacture of Demetallised Security Thread. It entered into a contract with Security Paper Mill, Ministry of Finance, Govt. of India, Hoshangabad (M.P.) on 6-10-98 for supplying 16 M.T. of Security Thread at the rate of Rs. 4095/- per kg. The break up of the price was as follows :- "BREAK UP OF PRICE Basic price : Rs. 3,500.00 per kg. Discount 10% : Rs. 350.00 Rs. 3,150.00 Excise Duty 25% : Rs. 787.50 C.S.T. 4% : Rs. 157.50 Total Rs. 4,095.00" While the appellant was thus supplying Security Thread as per the terms of the above contract fresh tender was in....
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....of the amount of Rs. 3,011.00 per kg. the appellant was informed that they are not entitled to the refund of any amount as claimed by them as the payment had been made by operating Fall Clause as per the terms of the contract between the parties. The buyer M/s. Security Paper Mill thereafter made payment in respect of the consignments received after 28-7-99 at the rate of Rs. 3,011.00 per kg. The appellant, therefore, made an application before the Assistant Commissioner of Central Excise for refund of alleged excess duty paid by it on following two grounds :- (1) The material had been supplied at the rate of Rs. 3,150/- per kg. and the duty was paid at the rate of 24% ad valorem on this price. The price had been reduced subs....
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....issed. There is an observation in the order that the appellant did not contest the classification of the subject goods under Chapter Heading 3920.36. 6. Before us the learned Counsel for the appellant contended that the Commissioner (Appeals) has gravely erred in holding that this is not a case of reduction/revision of contracted price. According to him, the action on the part of the buyer in making payment at the rate of Rs. 3,011.00 per kg. for all the consignments after 28-7-99 would amount to a revision of the contracted price. He placed reliance on a decision of this Tribunal in Vidhya Packaging Industries Private Limited v. CCE, Allahabad, [2001 (130) E.L.T. 631 (T) = 2000 (39) RLT (CEGAT)] in support of the above contention. In th....
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....event exceed the lowest price at which the SELLER sells the Special Security Thread of Identical specification and terms & conditions to any other party during the currency of this contract. (B) If at any time during the currency of this contract, the SELLER reduces the price of Special Security Thread or sells such threads to any other Party at a price lower than the price chargeable under this contract the SELLER shall forthwith notify such reductions or sale to the General Manager, Security Paper Mill, Hosangabad and the price payable under this contract for the Special Security Thread supplied after the date coming into force of such reduction or sale shall stand correspondingly reduced. (C) &nbs....
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....in placing reliance on the decision of the Supreme Court in MRF Ltd. v. Collector of Central Excise, Madras, [1997 (92) E.L.T. 309] in support of the impugned order. The Apex Court had held that once the assessee had cleared the goods on the classification and price indicated by him at the time of removal of the goods from the factory gate, the assessee becomes liable for payment of duty on that date and time and subsequent reduction in prices for whatever reason cannot be a matter of concern to the Central Excise Department in so far as the liability to payment of excise duty was concerned. It was further held that even if it is assumed that the roll back in the price of the tyres manufactured by the appellant was occasioned on account of ....