MAURYA UDYOG Vs. CCE

JUDGEMENT

(1.) The above -captioned appeals have been directed against a common order -in -appeal dated 20.12.2001. Appeal No. E/1138/02 -A has been filed by the Revenue against that part of the impugned order vide which the Commissioner (Appeals) has partly allowed the refund claim of the respondents to the extent of Rs. 39,44,755, while appeal No. E/987/02 -A has been filed by the assessee against that portion of the impugned order vide which their refund claim of Rs. 12,87,318 for the period 1.7.99 to 24.11.99 had been held to be time barred.

(2.) The facts are not much in dispute. The assessees are manufacturers of LPG cylinders. They filed a refund claim on 24.11.2000 on account of price reduction by the oil companies to whom the cylinders were supplied by them under the supply orders. The adjudicating authority disallowed the refund claim of Rs. 39,44,755 by following the ratio of the law laid down in MRF Ltd. v. Collector of Central Excise wherein it has been held by the Apex Court that once the goods are cleared on the basis of a price at the time of removal, subsequent reduction in price would not affect the excise duty. For the balance amount of Rs. 12,87,318 the adjudicating authority disallowed the claim holding it to be time barred, for the period 1.7.99 to 24.11.99.

(3.) The Commissioner (Appeals) has upheld the order of the adjudicating authority regarding rejection of the claim on the question of limitation, but has reversed the order regarding the rejection of refund claim of Rs. 39,44,755 holding that it was a case of reduction of mutually agreed price after clearance of excisable goods.