2003 (1) TMI 192

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....]. - The only issue arising in this appeal at the instance of the Revenue is whether liquidated damages due from the assessee for delayed delivery of goods can be claimed as a deduction in arriving at the assessable value of the goods. 2. The respondent-assessee is manufacturing telecommunication equipments falling under Chapter 85 of the Central Excise Tariff Act. The assessee was allowing 5 t....

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....rade for delivery at the time and place of removal. The invoices and the advice note raised by the assessee indicated the normal price. Deduction of the liquidated damages from the above amount is only an adjustment between the parties. Instead of paying the normal price and collecting the liquidated damages from the assessee for the delayed supply the amount of liquidated damages is deducted from....

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....ent case even before the delivery of the goods the amount of liquidated damages has been reduced from the price of the goods and therefore, in arriving at the assessable value deduction as claimed by the assessee should be granted. 5. We find no merit in the contention raised on behalf of the assessee. So long as there is no dispute regarding the price of the goods, only question to be examined....