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2009 (2) TMI 224 - HIGH COURT OF DELHIProof of payment of duty - Held that:- The benefit of any exemption/reduction in excise duty was liable to be passed on to the buyer/respondent. From the general condition aforesaid, it is clear that excise duty could not be recovered by the supplier appellant, unless the same is paid and duly certified. Learned counsel for the appellant was repeatedly asked whether the appellant had, in fact, paid the excise duty sought to be recovered, and produced documents in support thereof before the Arbitrator. However, he did not answer this question and kept on insisting that the appellant was entitled to recover excise duty at the rate of 10%, irrespective of whether or not the same was charged to the appellant, or paid by it. Since excise duty is paid to the government, the same is bound to be accounted for and documented. Had the amount claimed been in fact paid towards excise duty, there would have been no difficulty in establishing the same by producing challans/receipts of payment. Mere self serving statements showing computation of the amount claimed, relied upon by the appellant could not constitute evidence to establish payment of the amount towards excise duty. Appeal dismissed. As noticed hereinabove, the appellant could recover (upto a maximum of 10% excise duty on the basic price which was firm and final) only that much amount towards excise duty as it had actually incurred. No material, it appears, was produced either before the Arbitrator, or before the learned single Judge to show that the amount of ₹ 3,10,865/- was, as a matter of fact incurred by the appellant towards excise duty, but not paid by the respondent. Therefore, there is not only a contradiction in the award, as rightly held by the learned single Judge, the award is also contrary to the express terms of the contract. The same has deservedly been set aside.
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