2004 (3) TMI 587 - AT - Central Excise

Summary

Issues:
Dispute regarding dutiability of uniforms manufactured by M/s. Indo British Garments Pvt. Ltd. based on Central Excise duty tariff values.

Analysis:
The appellants contended that since the uniforms they manufacture are not sold in retail, the tariff value notifications fixing the value at 60% of retail sale price did not apply to their goods, thus claiming exemption from duty. They relied on judicial precedents to support their argument that in the absence of a measure for taxation, no duty was payable. However, the Central Excise authorities disagreed, stating that the goods should be valued under normal valuation provisions even if not covered by tariff value notifications.

Upon review, the Tribunal found no merit in the appellant's submissions. The Central Excise Act provides different valuation methods for excisable goods. Since no tariff value was fixed for the uniforms in question and they were not specified under Section 4A, the goods fell under the general valuation provision of Section 4, making them liable for duty. The Tribunal upheld the Revenue authorities' decision as lawful.

The Tribunal distinguished the appellant's reliance on Income-tax Act cases, emphasizing that Central Excise law has specific provisions for valuation of goods subject to duty. The absence of tariff value notifications did not imply exemption but meant the goods would be valued under other provisions in the Act. The Tribunal clarified that the charging section and computation provisions under Central Excise Act constitute an integrated code, unlike the Income-tax Act.

The appellants also argued that their wholesale price should be considered as retail sale price for valuation purposes. However, the Tribunal rejected this contention, noting that the goods were not sold in retail but issued as uniforms to guards without payment. Treating wholesale price as retail sale price would contradict the Central Excise Valuation scheme, which aims to use ex-factory normal price as the assessable value.

In conclusion, the Tribunal dismissed the appeals, affirming the levy of duty on the uniforms manufactured by M/s. Indo British Garments Pvt. Ltd.