TMI Blog2015 (10) TMI 865X X X X Extracts X X X X X X X X Extracts X X X X ..... d by them and the same shall be transaction value. In this case, sale did not take place. It is not a case of deemed sale, as appellant is not the manufacturer of gear box.When the transaction is not covered under Section 4 of the Central Excise Act, 1944, we hold that the appellant is not required to pay duty on the amount of insurance claim for damaged gear box. - Decided in favour of assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... surance company settled the claim of ₹ 5,60,000/. The Revenue is of the view that the amount received as insurance claim is the sale value of the damaged gear box, therefore, they are required to pay duty on the said amount.Therefore, a show cause notice was issued for demand of duty which was adjudicated. Both the lower authorities confirmed the duty demand alongwith interest and equivale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel and submits that it is admitted fact that appellant has received an amount of ₹ 5,60,000/- towards damaged gear box. Therefore, it is immaterial whether the gear box is lying in their factory or not.In fact, an amount of ₹ 5,60,000/- towards the value of such damaged gear box is required to be paid as they are availing cenvat credit on the gear box. 4. Heard the parties and con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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