TMI Blog2003 (1) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... nue is whether liquidated damages due from the assessee for delayed delivery of goods can be claimed as a deduction in arriving at the assessable value of the goods. 2. The respondent-assessee is manufacturing telecommunication equipments falling under Chapter 85 of the Central Excise Tariff Act. The assessee was allowing 5 to 10% deduction from the contract price towards liquidated damages in c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advice note raised by the assessee indicated the normal price. Deduction of the liquidated damages from the above amount is only an adjustment between the parties. Instead of paying the normal price and collecting the liquidated damages from the assessee for the delayed supply the amount of liquidated damages is deducted from the price, and the balance is paid to the assessee. 4. We find merit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amages has been reduced from the price of the goods and therefore, in arriving at the assessable value deduction as claimed by the assessee should be granted. 5. We find no merit in the contention raised on behalf of the assessee. So long as there is no dispute regarding the price of the goods, only question to be examined is whether liquidated damages is an item which is deductible under law fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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