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) EL

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