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TMI Blog2013 (12) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... a Full Service Maintenance Agreement (hereinafter referred to as 'FSMA'). In terms of the said agreement, they charged 29 paise per copy and as and when any part of the photocopy develops a defect, the appellant would change the same free of cost. 3. During the relevant period, the appellant was changing the old and used photoreceptor drums, tonners, etc. The old photoreceptor drums were being brought back to the factory and were re-conditioned. Such re-conditioned drums were being sent to their customers. It is not necessary that the same old and used photoreceptor drums would be re-conditioned and sent to the same party. This was a continuous process. 4. A dispute arose between the appellant and their jurisdictional central excise offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y were being sent to their customer's premises for replacement. Inasmuch as no cost of the said goods was being recovered by them, there was no question of recovery of any excise duty. 7. While dealing with the contention of the appellant, the original adjudicating authority has observed that though it appears that the party has not passed incidence of excise duty to their customers but a deeper examination reveals that such recovery stands made by the appellant from their customers inasmuch as, they were collecting 29 paise per copy from their customers under the said agreement. Normal life of the drum is 50,000 copies for which the party collects Rs.14,500/- and the price of a new drum is about Rs.5,472/- . Therefore, the amount collecte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dance with the provisions of the relevant Sections of the Central Excise Act. The only fact required to be examined is as to whether the appellant have collected the duty amount in respect of disputed goods i.e. the reconditioned drums. Admittedly, no cost of the reconditioned drums stands charged by the appellant from their customers at the time of clearance of the reconditioned drums. If that be so, it has to be hold that no duty stands charged by them from their customers. Even if the appellant would not have discharged duty liability on the said reconditioned drums, under protest, at the insistence of the Revenue, their agreement of Full Service Maintenance with their customers @ 29 paise per copy would have remained the same. As such, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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