TMI Blog2009 (4) TMI 829X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the assessees have been receiving. Performance Guarantee Bonus in case the Refractories withstands over and above certain specified heats. On being called for, the assessees furnished the copy of relevant supplementary invoices in respect of bonus received, details of bonus adjusted against penalties payable by them. The assessees have not paid duty on such bonus received by them from the Refractories stood beyond the stipulated heats. From the above, it appeared that the assesses short paid duty on the bonus received by them in relation to the sale of fire bricks to M/s. VSP. In this connection, the assessees contended that they are not liable to pay duty on the performance bonus in view of the specific decision of Hon ble CEGAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rice and these bricks are used in the management of ladle. This activity of management of ladle is a separate activity unconnected with the sale of refractory bricks. It is his submission that the bonus or penalty comes into picture only when the act of ladle management is undertaken. Incidentally, in this case the ladle management is entrusted to the appellants. It is his submission that the ladle management is a case of human diligence and expertise and has nothing to do with the structural efficiency of the bricks. He would submit that all the following judgments clearly hold that the amount received, as bonus cannot be included in the value of the bricks sold by the appellant. The judgments are :- 1. Jalan Refractories Pvt. Ltd. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e orders issued by M/s. VSP. The purchase orders specifically stipulated for performance guarantee bonus which indicated the supplier should stand guarantee for the number of heat per set as per the agreement and bonus shall be awarded if the life achieved is above guaranteed heats, it is also undisputed that the ladle management was entrusted to the appellant. We find that an identical issue was heard by the, Co-ordinate Bench of the Tribunal in. the case of Burn Standard Co. Ltd. (supra). The issue involved in that case is also the identical issue or bricks supplied to the purchasers. The ratio of the said decision is as under :- 3. Insofar as the third category of proforma invoice is concerned, we find, that the appellants used to iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, in terms of the judgment rendered Art the case of Jalan Refractories Pvt Ltd. and that of Bhartia Cutler Hammer Ltd., the bonus received for better performance and expeditious execution of orders is not liable to be added to the assessable value Respectfully following the ratio of the judgments cited above, the impugned order is set aside and appeal allowed. 8. In the case before us, it is undisputed that the goods were already cleared on a value which was indicated on the purchase order and duty liability was discharged on it. Subsequent receipt of bonus in any case would not change the value of the goods which was cleared from the factory premises of the appellants. If that be so, the ratio of the decisions which had been reproduc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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