2004 (9) TMI 517 - AT - Central Excise

Summary

Issues: Classification of fruit pulp based drinks for duty assessment under Section 4 of the Central Excise Act; Correct assessable value determination; MRP declaration requirement.

In the appeal by M/s. Lumbini Beverages Pvt. Ltd., the primary issue was the classification of fruit pulp based drinks for duty assessment under Section 4 of the Central Excise Act. The company classified their product as "Slice" under sub-heading 2202.40, while the Department sought to classify it under sub-heading 2202.99, alleging incorrect availing of 50% abatement from the sale price. The Deputy Commissioner, in Order-in-Original No. 8/01, held that the assessable value was incorrectly determined by the company as they were not entitled to the abatement under Section 4. Consequently, duty demand and penalty were imposed. The Commissioner (Appeals) upheld this decision, emphasizing the need for MRP declaration on fruit pulp based drinks.

Upon review, the Tribunal noted that the Department did not notify the product under Section 4A of the Central Excise Act, necessitating valuation under Section 4. The company maintained that the price charged from customers was Rs. 72 per crate without any abatement. The Tribunal found no evidence from the Revenue to dispute this claim. The Commissioner (Appeals) had already determined the classification of the product under sub-heading 2202.40, unchallenged by the Revenue. Consequently, the Tribunal concluded that the assessable value should be based on the invoice price of Rs. 72 per crate, with no differential duty payable. As a result, the appeal by M/s. Lumbini Beverages Pvt. Ltd. was allowed, resolving the issue of duty assessment classification under Section 4 of the Central Excise Act.