Customs, Excise and Gold Tribunal - Delhi
Faridkod Cooperative Sugar Mills Ltd. vs Cce on 17 May, 2004
Equivalent citations: 2004(95)ECC169, 2004(171)ELT174(TRI-DEL)
ORDER
K.K. Usha, J. (President)
1. In this appeal at the instance of the assessee the issue raised for consideration is whether the amount received by the appellant towards liquidated damages for non-lifting of the quantity of molasses is addable to the assessable value of the goods.
2. The appellant is producing molasses. One of the Distilleries did not lift the allocated quantity of molasses during the financial year 1995-96 as they were to pay a higher rate of Rs. 200 per qtl. On the failure of the buyer to lift the allocated quantity, the appellant had to sell the molasses at a lower price of Rs. 85 per qtl. Thereafter, the appellant received liquidated damages to the extent to Rs. 10,12,000 on account of non-lifting of molasses as mentioned above.
3. The Revenue took the view that the above amount is addable to the assessable value of the molasses cleared by the assessee. The demand was confirmed by the adjudicating authority as well as the appellate authority. In view of the above, the assessee has come up in appeal.
4. We heard Ld. Counsel for the appellant as well as Ld. DR for the Revenue.
5. The issue is settled by the decision of this Tribunal in the case of Spring Fresh Drinks v. CCE, 1991 (54) ELT 333, CCE, Jamshedpur v. Bhagwati Oxygen Ltd., 2000 (117) ELT 647 and Inox Air Products Ltd. v. CCE, 2001 (134) ELT 224. We follow the ratio of the above decisions and hold that the liquidated damages received by the appellant cannot be added to the assessable value. The order impugned is set aside the appeal stands allowed.