BAJAJ AUTO LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE assessee's claim for refund of excess duty of Rs. 7,44,709.68 paid on flexible hose pipes imported by them and cleared after cutting each pipe into 14 pieces to M/s. Diatec India Ltd., M/s. Maharashtra Scooters Ltd. and their sister concern at Waluj, has been rejected by the authorities below on the ground that the value and duty paid on the date of clearance was the correct value and duty paid on inputs which was subject to the process of cutting, and not cleared as such.

(2.) I have heard both sides.

(3.) WHEN goods were partially processed by cutting into pieces, it was open to the appellants to consider value addition and profit at the time of clearance and, therefore, duty paid on such value determined by the appellants on the day of clearance is required to be treated as paid on the final value as per Section 4(1) of the Central Excise Act. 1944. Once the appellants have cleared the goods at the price indicated by them at the time of removal from the factory gate, they become liable for payment of duty on that value at that time, as held by the apex, court in MRF Ltd. v. CCE . No documents have been filed to substantiate the assessee's stand that lesser payment was made by the consignees, no credit notes issued to their clients nor debit notes raised by their clients have been produced. In this view of the matter, the submission that the consignee is availing lesser Modvat credit in respect of the goods is not material to the issue as to whether duty was correctly paid on the correct value at the time of removal. I, therefore, see no reason to interfere with the impugned order and accordingly uphold the same, and reject the appeal.