TMI Blog2005 (3) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.10 per piece and delivery was to be completed by 2-12-1997; that due to delay in supply of the goods, they made an application for extension of delivery period which was granted from time to time up to 31-3-2001 on the condition that the rate of supply would be the lowest of the three tenders to be supplied suppler by railway; that under tender No. 3C-137/99 floated by the Railway Board, the supply rate was finalized at rate Rs. 20.60 per piece which was intimated to the Appellants by Railways on 31-5-2001; that pending the finalisation of new rates, they had supplied the impugned goods at the old rate of Rs. 25.10 per piece, on account of which they had paid excess duty; that they have received the payment from railway only at the reduce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erein it has been clearly mentioned that the payment in respect of elastic rail clips has been made to the Appellants "at the basic rate of Rs. 20.60 each instead of Rs. 25.10 each excluding. Other taxes/duties as admissible under the contract." Finally, he submitted that the normal value under Section 4 of the Central Excise Act in the present matter would be reduced price only since the contract for the supply of rail clips, which has lapsed, has been revived only on the condition of reduced rates. 4. Countering the argument Shri R.C. Sankhla, learned Senior Departmental Representative, submitted that the supply of the impugned goods was effected by the Appellants during May, 2000 and August, 2000 to March, 2001 whereas the price of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd the Certificate issued by South Eastern Railway, Kolkata. As per the provisions of Section 4, the value shall be deemed to be the normal price of the goods, that is to say the price at which the goods are ordinarily sold by the assessee to a buyer in the case of wholesale trade for delivery at the time and place of removal where the buyer is not related person and the price is the sole consideration for the sale. In the present matter, it cannot be said that the rate of Rs. 25.10 per piece was the rate in existence at the time and place of removal of the clips by the Appellants since the contract entered into between the Railway Board and the Appellants had ceased to be operating on account of delay in delivery. The delivery has been mad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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