Case Law Details
Budge Budge Refineries Limited Vs Commssioner of Central Excise, Kolkata (CESTAT Kolkata)
Issue involved in this case is valuation of waste/bye-product and the applicability of cum-duty price for the goods cleared. There is no dispute regarding liability of Central Excise duty. The Appellant has initially cleared the goods without payment of duty by availing the benefit of Notification No.89/1995 dated 18.05.1995. Subsequently on the advice of the Department, they agreed and paid the duty by treating the value as cum-duty price. The Department has contested the adoption of cum-duty price and demanded differential duty.
The Appellant stated that the issue has already been settled when Section 4 was amended and an Explanation to Section 4 was inserted w.e.f. 14.05.2003.
As per the explanation cited above, when duty is not collected separately, the price actually realized is deemed to be cum-duty price.
Hence, as per the Explanation cited above, the price actually realized is deemed to be inclusive of duty.
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