2006 (9) TMI 322 - AT - Central Excise

Issues:
1. Demand of additional customs duty on 'Button cells' imported by the appellants under Section 4A of the Central Excise Act.
2. Imposition of penalty on the importer.
3. Applicability of Weights and Measures Act to the valuation of goods for excise duty under Section 4A.
4. Consideration of CBEC Circular No. 625/16/2002-CX in determining valuation.
5. Assessment of goods under Section 4A without specific mention in Schedule III to the Weights and Measures Rules.
6. Limitation period for raising demands on goods covered by Bills of Entry.
7. Knowledge of relevant facts by the Department and suppression of facts by the appellants.
8. Waiver of pre-deposit and stay of recovery of duty and penalty amounts.
9. Early disposal of the appeal.

Analysis:
1. The judgment addressed the demand for additional customs duty on 'Button cells' imported by the appellants under Section 4A of the Central Excise Act. The ld. Commissioner imposed a penalty on the importer along with the duty demand. However, the Tribunal found that the goods did not appear in the relevant Schedule to the Weights and Measures Act, which is crucial for determining valuation under Section 4A. The CBEC Circular clarified that in the absence of a statutory requirement to declare retail sale price, valuation should be done under Section 4 of the Central Excise Act. The Tribunal held that the Commissioner's failure to consider this Circular was incorrect and that the appellants had a prima facie case against the assessment under Section 4A.

2. The Tribunal also considered the applicability of the Weights and Measures Act to the valuation of goods for excise duty under Section 4A. It noted that the Circular specified that goods not mentioned in Schedule III to the Weights and Measures Rules cannot be valued under Section 4A. The Tribunal emphasized that the Circular's clarity on this matter binds the Departmental authorities, including the Commissioner who passed the impugned order. The Tribunal leaned towards the view presented in the Circular, indicating a strong case for the appellants against the assessment under Section 4A for 'Button cells.'

3. Regarding the limitation period for raising demands on goods covered by Bills of Entry, the Tribunal observed that out of the 62 Bills of Entry, only one was filed close to the issuance of the show-cause notice. The remaining entries were filed over a more extended period. The Tribunal noted that the Department's awareness of relevant facts from as early as June 2001 indicated no suppression of facts by the appellants. Therefore, the larger period of limitation was not applicable to them.

4. The judgment concluded with the waiver of pre-deposit and stay of recovery of duty and penalty amounts. The Tribunal, in agreement with the Consultant, expressed a willingness for early disposal of the appeal due to the significant stake involved. The appeal was scheduled for a specific date to expedite the process and address the issues comprehensively.

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