TMI Blog2000 (12) TMI 675X X X X Extracts X X X X X X X X Extracts X X X X ..... (T)]. The appeal is directed against duty demand of Rs. 1,33,000/- and penalty of Rs. 50,000/-. The appellants manufactured metal containers for several Industrial Companies. M/s. Sandoz India Limited is one of them. The appellants got into a contract for manufacture and supply of 15 lakhs metal containers to M/s. Sandoz India. The buyer Sandoz India advanced them Rs. 44,21,490/- in a stagge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition was required to be made. Reliance was placed on several decisions of the Tribunal [1999 (114) E.L.T. 720, 1998 (101) E.L.T. 86, 2000 (37) R.L.T. 270] etc. 2. The above contentions have been opposed by the learned DR stating that, in the facts of the present case, it is clear that the advance was a consideration for the price fixed. He drew our attention in particular to letter dated 4-1- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the sale to Sandoz was on contract basis. It is clear from the letter dated 4th January, 1989 of Sandoz India that advance given by Sandoz had affected the price and the price was being lowered to the extent the assessee would have paid interest on the advance. From this, it is clear that the contract price was lower on account of the interest free advance received by the appellant. In such a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng into account only the effect of interest free advances. For this purpose, the impugned orders are set aside and the case is remitted back to the jurisdictional Deputy Commissioner, for passing a fresh order after allowing the appellants to produce relevant data and to make submissions. The penalty amount shall also be re-considered in the light of the re-computed duty demand. - - TaxTMI - TM ..... X X X X Extracts X X X X X X X X Extracts X X X X
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