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2017 (5) TMI 448 - AT - Central ExciseValuation - inclusion of amount collected towards compensation for non lifting of the goods - It is alleged that the recovery of amount from the customers as operational compensation is an additional consideration and will form part of the assessable value of the goods already cleared to such customer - Held that: - In terms of section 4 of the CEA, excise duty is required to be paid on the transaction value which is charged by the manufacturer from the whole sale customers. In the present case excise duty has already been paid on the transaction value of the components supplied to M/s. Eicher. The dispute is with reference to the compensation amount received by the appellant. Such amounts cannot be considered as additional consideration for the goods actually sold - similar issue decided in the case of JINDAL PRAXAIR OXYGEN CO. LTD. Versus COMMISSIONER OF C. EX., BELGAUM [2006 (8) TMI 461 - CESTAT, BANGALORE], where it was held that the compensation paid by the buyer to the assessee at previously agreed rate on account of the former's failure to lift the agreed quantity of excisable goods [Nitrogen etc.] was in the nature of liquidated damages for breach of contract, not includible in the assessable value of the goods. Appeal allowed - decided in favor of appellant.
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