2005 (2) TMI 625 - AT - Central Excise

Summary

Issues:
1. Whether the "Combi Pack" of products supplied by the Appellant is subject to duty and penalty.

Analysis:
1. The primary issue in this case revolves around the classification of the "Combi Pack" of products supplied by the Appellant, consisting of three pieces of 100 gms. of Margo Soaps and one 50 gms. Neem Active Brand Tooth Paste provided free of charge. The Appellant contests the imposition of duty amounting to Rs. 44,93,848.00 lakhs and a penalty of Rs. 10,000.00. The Appellant's Advocate relies on precedents set by the Tribunal in cases such as Surya Food and Agro Ltd. v. Commr. of Central Excise, Noida and Vinayaka Mosquito Coil Manufacturing Co. v. CCE, Bangalore, where it was established that free supplies accompanying the sale of certain goods are not to be included in the assessable value. Furthermore, reference is made to the Standard of Weights and Measures (Packaged Commodities) Rules, 1977, which define a "Combi Pack" as the product in question.

2. The arguments presented by the Appellant's Advocate are countered by the Respondent's representative, who supports the findings of the Commissioner regarding the duty and penalty in question. The Respondent maintains that the Commissioner's decision should be upheld.

3. Upon careful consideration of the submissions from both parties and the precedents cited, the Tribunal concurs with the Appellant's position. Citing the Tribunal's previous decisions, it is established that the free supplies included in the "Combi Pack" are not to be included in the assessable value for duty calculation. Consequently, the Tribunal grants a stay from duty and penalty to the Appellant until further orders, with the case scheduled for a hearing on 12th April 2005.