COMMISSIONER OF CENTRAL EXCISE Vs. MAZAGON DOCK LTD.

JUDGEMENT

(1.) This appeal is against the judgement of the Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT). Briefly stated, the facts are as follows:

(2.) On 15.03.1990, they were issued a show-cause notice inter alia alleging suppression of the actual price of rigs for the purposes of excise duty. It was claimed that over and above the price shown in the contract, the respondents were also entitled, as per the policy of the Government, to receive a subsidy of 20% from the Government and 10% from ONGC. It was claimed that this 30% formed part of the price and excise duty was payable thereon. The contention of the respondents that they had already included 10% (received from ONGC), as well as their contention that 20% price received from the Government were not included, were not accepted. By an order dated 29.11.1991, they were directed to pay the differential duty as well as penalty. By the said order the contention regarding the limitation was also rejected.

(3.) The respondents carried the matter in appeal to the Tribunal. The Tribunal has by the impugned judgement held that 30% subsidy cannot and does not form part of the price. The Tribunal has also relied on a judgement of this Court in the case of CCE V/s. Cotspun Ltd. and held that the differential duty could not be claimed after a lapse of two years. By the impugned order the Tribunal has rejected the additional plea raised by the respondents that no excise duty was payable on the goods as the rigs were exported out of India. The respondents have not come in appeal against this part of the order. Hence this finding stands concluded.