2002 (1) TMI 754 - AT - Central Excise

Summary

Issues:
1. Discrepancy in declared prices for the same product with and without a free item.
2. Legal consequences of filing a price list and intention to sell goods at the declared price.

Issue 1: Discrepancy in declared prices for the same product with and without a free item:
The appellant, a manufacturer of scouring powder, filed three price lists, one for the product packed with a free scrubber at a lower price than the same product without the scrubber. The department rejected the lower price, citing the higher price declaration for the same quantity of the product without the free item. The appellant argued that the presence of the free scrubber made the product a different commercial commodity. However, the Tribunal held that the product remained the same, i.e., Vim scouring powder, regardless of the free item included. The Tribunal emphasized that the classification should be based on the main product, not on additional free items offered.

Issue 2: Legal consequences of filing a price list and intention to sell goods at the declared price:
The Tribunal addressed the legal implications of filing a price list by a manufacturer. It noted that when a manufacturer submits a price list, it signifies an intention to sell the goods at the indicated prices. Approval of the price list by the Department implies acceptance of the declared prices as correct under the law. The Tribunal highlighted that if a manufacturer did not intend to sell goods at the declared prices, they would not have submitted a price list. Therefore, the Tribunal concluded that having two different prices for the same goods without distinguishing features like sale in bulk is impermissible. The Tribunal remanded the matter to the Assistant Commissioner to determine the price based on discounts allowed by the Commissioner (Appeals).

In conclusion, the judgment addressed the discrepancy in declared prices for the same product with and without a free item, emphasizing the classification based on the main product. It also highlighted the legal implications of filing a price list and the intention to sell goods at the declared prices, emphasizing the impermissibility of having two prices for the same goods without distinguishing features.