TMI Blog2016 (1) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... ice price of the goods - Held that:- Decisions quoted above and especially the ratio of the Tribunal’s Larger Bench decision in the case of Victory Electricals Ltd. (2013 (12) TMI 81 - CESTAT CHENNAI ), the liquidated damages (LD) had to be factored in to arrive at the correct transaction value which has to be treated as assessable value for payment of Central Excise duty; whatever the duty paid i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the agreement with the buyers, the liquidated damage (LD) charges were deducted as compensation from the invoice price of the goods. The appellants claim is that as the duty is payable on the transaction value and the transaction value was reduced because of the deduction of the said liquidated damages, the excess duty has been paid. The appellant relies on the following case laws in their su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n transaction value as follows; means the price actually paid or payable for the goods, when sold, and includes in addition to the amount charged as price, any amount that the buyer is liable to pay to, or on behalf of, the assessee, by reason of, or in connection with the sale, whether payable at the time of the sale or at any other time, including, but not limited to, any amount charged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion value and this value would be the value relevant for levy of duty. It was further held that : 20. .. wherever the assessee, as per the terms of the contract and on account of delay in delivery of manufactured goods is liable to pay a lesser amount than the generically agreed price as a result of a clause (in the agreement), stipulating variation in the price, on account of liabilit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for payment of Central Excise duty; whatever the duty paid in excess on account of non-factoring of liquidated damages would be liable to be refunded to the appellants. Consequently, all the three appeals are allowed with consequential benefit to the appellants. (Operative portion of the order has been pronounced in open court on completion of hearing on 2.9.2015) - - TaxTMI - TMITax - C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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