1996 (2) TMI 209

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..... e same to Indian Drugs & Pharmaceuticals, a public sector Undertaking. The appellant was availing the benefit of Notification No. 120/76-C.E. by which the Central Government exempted goods falling under Item 68 cleared from the factory of the manufacturers on sale from so much of duty of excise as is in excess of the duty calculated on the basis of the invoice price charged by the manufacturers for the sale of such goods. For the period from 1-10-1985 to 15-10-1985, the appellant cleared the final products paying duty on the price shown in the invoice namely Rs. 1798.61 P. It appears as per the contract, the appellant and the purchaser agreed on a reduced price of Rs. 1756.68 per MT w.e.f. 1-10-1985, though this decision was taken subsequen .....

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..... cise leviable thereon as is in excess of the duty calculated on the basis of the invoice price (excluding the duty and local taxes, if any, included in such price) charged by the manufacturers for the sale of such goods;" There is a proviso which originally contained 5 clauses of which 3 were deleted subsequently as unnecessary. Under proviso (1) exemption shal1 be admissible only if the manufacturer files with the Jurisdictional Superintendent a written declaration to the effect that he opts to avail of the said exemption. Clause (iv) reads thus :- "exemption shall be admissible only if the invoice price is not influenced by any commercial, financial or other relationship whether by contract or otherwise between the manufacturer or any p .....

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..... nnot be enterpreted to mean as a desire to change over to price list system without actually filing a price list. In the price list system, price reduction is required to be placed before the officer concerned for approval. Such a requirement is absent under the Notification No. 120/75. The Notification exempts duty in excess of the invoice price. The question in a given case would be what was the true invoice price. If the invoice correctly reflected the price, that would be the invoice price. If an error had been committed in recording the price in the invoice, that would not be the true invoice price. We see no reason why price wrongly shown in the invoice cannot be corrected to reflect the correct state of affairs. 6. Mrs. Ruchir .....

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