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TMI Blog2016 (11) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... sion Towers. They discharged the Central Excise duty as per the invoices raised by theme Subsequently, they raised debit note on the purchaser for excess amount of material used by them in the manufacturing of such transmission towers and recorded the same in the account book as amount receivable from IVO Power Engineering Ltd. During the scrutiny of the balance sheet and ledger account it was noticed by the lower authorities that the respondent had to discharge the Central Excise duty on such debit note raised holding that the definition of transaction value applies. Showcause notice was issue for demand of duty for the period April 1999 to March 2003. The adjudicating authority after following due process of law confirmed the demand raise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e High Court of Commissioner of Income Tax v. Ganesh Builders 1979 116 1 TR 911 (Bom) for the proposition that once there is a debit note raised and recorded in the accounts book in relation to the sales made. He Hindustan Shipyard Ltd. 1987 (28) ELT 586 (Tri.) would also rely upon the decision of v. Commissioner of Central Excise for the proposition that when there is determination of the final price. 4. Learned Counsel appearing for the respondent would draw our attention to the facts of the case and submits that the price/value has to be determined based upon the contract between parties which in this case is regarding supply of the towers and the contracted amount paid by the purchasers. He relied upon the decision of the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is whether during April 1999 to March 2003, the amount which has been indicated in the balance sheet as amount payable has to be considered as additional consideration and Central Excise duty is demandable or otherwise, 6. Undisputed facts are the respondent entered into a contract for manufacturing and supply of transmission towers for a specified amount and of a specified weight. When the goods were dispatched, weight of the goods were excess than the contracted quantity for which purpose they raised debit note on the purchasers. Debit notes were not presented before us hence we are unable to appreciate the narration in debit notes. It is also undisputed that the debit notes which have been raised have been accounted in the records of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nty, commission or any other matter; but does not include the amount of duty of excise, sales tax and other taxes, if any, actually paid or actually payable on such goods." 63. It can be seen from the above reproduced definition of transaction value it would be the situation wherein any price payable for the goods, the demand of the duty arises. In the case in hand, the respondent had raised debit notes for the excess quantity of steel used in the manufacturing of towers. In a situation wherein the contract/agreement between two parties provides for escalation of the price due to increase in the cost of material or the consumption pattern, there of, even if the materials are dispatched, supplementary invoices prepared on mutual agreement t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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