2005 (11) TMI 304 - AT - Central Excise

Summary

Issues:
Whether duty should be demanded based on wholesale price or MRP under Section 4(1)(a) or Section 4A of the Central Excise Act, 1944.

Analysis:
The issue in the present appeal revolves around the determination of duty on goods based on the wholesale price or the Maximum Retail Price (MRP) printed on the vials containing nail polishes. The Revenue argues that since the appellant has printed MRP on the vials, Section 4A should be invoked. On the contrary, the appellant contends that MRP was mentioned only to remove doubts and not as a mandatory requirement under the Standards of Weights & Measures Act, 1976. The appellant relies on a Board's Circular and an opinion from the Assistant Controller of Legal Metrology to support their argument that Section 4A should not be applicable where there is no statutory requirement to print MRP on the packages.

The Tribunal notes that the Commissioner confirmed the demand solely based on the presence of printed MRP without considering the clarifications provided by the Board and the Assistant Controller of Legal Metrology. The Tribunal emphasizes that the authorities under the Standards of Weights & Measures Act, 1976 are best suited to determine the applicability of the Act's provisions. Therefore, the Tribunal deems it necessary to remand the case back to the Commissioner for reconsideration. The Commissioner is directed to take into account the opinion of the Assistant Controller of Legal Metrology and seek further clarifications if needed. The Commissioner is also instructed to consider the Board's Circular relied upon by the appellant during the re-adjudication process. Consequently, the impugned order is set aside for a fresh decision based on the observations made by the Tribunal.

This detailed analysis highlights the key arguments presented by both parties, the reliance on legal provisions and expert opinions, and the Tribunal's decision to remand the case for proper consideration in light of the relevant legal framework and clarifications provided.