Legal Knowledge::::: The customer is liable to pay the extra price when the excise duty had been enhanced prior to the delivery of the vehicle

1. Customer booked a car with the manufacturer
2. Customer was asked to complete the modalities for delivery of the car
3. Indication in the proforma invoice that the price prevailing at the time of billing would be applicable
4. Billing of the car done a year later
5. Meanwhile, increase in excise duty resulting in price hike
6. Deposit of the excess amount  by customer under protest
7. Plea of the customer that since he was not responsible for the delay in the delivery of the vehicle, he was not liable to bear the increase the price
8. Held: In terms of s. 64-A (1)(a), it is the liability of the customer to pay  the extra price when  the excise duty had been enhanced prior to the delivery of the vehicle
9. On facts, no evidence to show that there was any deliberate intention on the part of the manufacturer and the dealer to delay the delivery of the vehicle
10. Thus, the order passed by the National Commission that the increase in price by way of additional taxes is to be borne by the customer and not by the manufacturer, upheld by Supreme Court.

Case Name:- RAVINDER RAJ v. M/S. COMPETENT MOTORS CO. PVT. LTD. & ANR.

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