Excise Duty cannot be levied on Payments based on post-sales performance

M/s. Sail Refractory Co. Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai) Bonus and penalty are post-sales provisions, therefore excise duty cannot be levied on such payments which are based on performance post-sales / clearance of the goods. Above issue is covered by the judgment in the case of Vishwakarma Refractories Pvt. Ltd. Vs. Commissioner of Central Excise, Bangalore – 2015 (320) ELT 622 which was affirmed by the Hon’ble Apex Court as reported in 2015 (320) ELT A257 (SC). FULL TEXT OF THE CESTAT JUDGMENT Brief facts are that the appellants are engaged in the manuf...