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2017 (4) TMI 221 - AT - Central ExciseValuation - raw material charges - cylinder charges - amount recovered by way of debit notes - inclusion of raw material charges and cylinder charges in the assessable value - appellant's case is that they were required under law to add only that proportion of the cylinder cost, as was attributable to the actual production, and not the total cost of the cylinders - Held that: - the buyer of the printed material is not supplying the cylinders to the appellant free of cost. It is the appellant who s purchasing the cylinders. In case the total quantity purchased by the buyer is later reduced by buyer for certain reasons, the balance cost of cylinder is being recovered by the appellant from the buyer as damages. Thus, it is not the case of the buyer supplying cylinders free of cost to the appellant but it is the case of appellant buying the cylinders themselves and recovering part of the cost of cylinders from the buyer as damages. In these circumstances, Rule 6 of the Central Excise Valuation Rules has no application - There is no denying of this fact that this extra amount has been recovered from the buyer and the same is in respect of the goods manufactured and supplied by the appellant - the amount recovered from the buyer by the appellant is in the nature of liquidated damages. Thus, the decisions of the Tribunal in the case of Inox Air Products Ltd.[2000 (12) TMI 184 - CEGAT, MUMBAI] is squarely applicable to the instant case - demand is set-aside. Appeal allowed - decided in favor of appellant.
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