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2011 (3) TMI 385 - AT - Central ExciseValuation - Damaged Goods - Since,insurance claim received by the respondents was in respect of the goods which were damaged in the flood and which were subsequently sold as scrap - Therefore, Revenue allegation is the insurance claim received in relation to such damaged goods should form additional consideration received by the respondents in relation to the scrap and it should be considered as vital factor to arrive at the normal price in respect of the damaged finished goods in terms of Section 4(1)(a) of the Central Excise Act, 1944 - Hence, the Commissioner (Appeals)held that the respondents though had received certain amount of compensation from the insurance company in relation to the damaged goods, they had also incurred expenses for rectification and repairs of part of the damaged goods - the department has not been able to establish that the compensation received from the insurance company was forming part of the sale price of the ultimate product cleared and disposed of by the respondents - Compensation in relation to the damage suffered - Decided against the revenue.
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