LAWS(CE)-2009-2-172

COMMISSIONER OF CENTRAL EXCISE Vs. TISCO (TUBE DIVISION)

Decided On February 25, 2009
COMMISSIONER OF CENTRAL EXCISE Appellant
V/S
Tisco (Tube Division) Respondents

JUDGEMENT

(1.) HEARD both sides.

(2.) REVENUE filed this Appeal against the impugned Order passed by the Commissioner (Appeals), Central Excise & Service Tax, Ranchi. The Commissioner allowed the refund of Central Excise Duty on the ground that incidence of duty has not been passed on to the customers.

(3.) THE contention of the Respondents is that due to computer error, the total value of the goods cleared by the Respondents was shown as Rs. 54,12,931.00 and the duty was paid by them accordingly, whereas the goods actually cleared under the respective invoice were valued at Rs. 5,52,950.00 only. This mistake was pointed out by the customer of the Respondents and the said customer paid the duty on the basis of value of the goods received by them as per contract. This is evident from a letter dated 29.03.06 written by the customer of the Respondents, M/s. Bharat Heavy Electricals Limited, whereby it was informed that the total value of the goods in question amounting to Rs. 5,52,950.00 only and the same amount was paid to the Respondents through a cheque No. 222381 dated 20.03.06. In view of these facts, the incidence of duty has not been passed on to the customers by the Respondents. Therefore, the refund was rightly allowed to them by the lower Appellate Authority.