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2008 (4) TMI 443 - AT - Central ExciseValuation as to whether the additional discount offered to holders of advance license can be included in the assessable value or not - . It is not disputed that the appellant was supplying the same materials at a higher price and in respect of advance licence holders who surrendered the rights to the appellant gave the same materials at a specially discounted price. - In this case, the additional discount given to the advance licence holders are clearly an additional consideration which influence the sale price - The value enhancement for the purpose of demand of duty is legal and proper. - The claim that the appellant was having a bona fide belief that the additional discounts are permissible has to be accepted and demand of duty has to be confined to duty within the normal period of limitation. No penalty will be justified. - In the present case, admittedly, the clearances in question were not effected by following the 2001 Rules, a requirement laid down under Notification 44/2001-C.E. (N.T.) for the purpose of claiming the benefit of Rule 19(2) of the Central Excise Rules, 2002. - I need not embark on further discussion on other conditions of Notification 44/2001. Where it is found that a mandatory condition was not satisfied by the assessee, he was not entitled to claim duty-free clearance of the goods under Rule 19(2). The issue is held against the appellants. – Held that benefit is not available - Rules in contradistinction from circulars, instructions etc. stand on a higher footing and hence can hardly be said to be hollow pieces of legislation. They are made to be complied with. In the present case, admittedly, the clearances in question were not effected by following the 2001 Rules, a requirement laid down under Notification 44/2001-C.E. (N.T.) for the purpose of claiming the benefit of Rule 19(2) of the Central Excise Rules, 2002. I can hardly consider that requirement to be relaxable. - Coming to revenue neutrality, I find that this issue has been debated by both sides with extensive reference to the provisions of EXIM Policy and the Handbook of Procedure. On the one hand, learned counsel has argued that, as the supply of goods in question to advance licence holders were ‘deemed exports’ under para 8.2(a) of Chapter 8 of EXIM Policy, 2002-07, the assessee was entitled to refund of terminal excise duty – Held that assessee as deemed exporter could not claim benefit of refund of terminal excise duty going by Handbook of Procedures – plea of revenue neutrality not sustainable – Appeal allowed
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