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2018 (6) TMI 78 - AT - Central ExcisePrice escalation - Price Variation clause - duty short levied - higher price of the goods - interest on delayed payment - supplementary invoice due to price escalation on account of increase in input labour and other costs - Held that:- The balance of higher price of the goods is due to the reasons, which could not be foreseen by the appellant at the time he made delivery of those goods and thus, it cannot be considered as the retrospective revision of the price - the Commissioner (Appeals) has wrongly held that the price indicated by the supplementary invoice is directly relatable to the value of goods on the date of clearance because on the date of clearance there was no agreement between the seller and the buyer of the goods about the escalated price as are mentioned in the supplementary invoice and in accordance of Section 4 of the act whatever the transaction value is agreed between the parties at the time of clearance is relevant for Section 11A and even the purpose of Section 11AB the expression “ought to have been paid” would mean the time when the price is agreed upon by the seller and the buyer. Since both the parties were not aware of escalated price or possibility of escalation at the time the goods were removed, the supplementary invoice cannot be a ground to call the said duty paid as the short levied. Demand do not sustain - appeal allowed.
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