2007 (8) TMI 526 - AT - Central Excise

Summary

Issues involved: Differential duty and penalty on washing machines u/s 4A of the Central Excise Act for the period 12-5-2000 to 13-5-2003.

Summary:

Issue 1: Differential duty on washing machines

The appellant was asked to pay a differential duty of Rs. 8,28,753/- and an equal penalty on washing machines due to stock transfer from an area with lower MRP to an area with higher MRP. The demand was based on amendments to Section 4A of the Central Excise Act from 13-5-2003. However, the Tribunal found no prima facie case in favor of the duty demand as there was no alteration of declared retail price on the goods' label. Referring to a previous decision, it was noted that in the MRP regime, the actual retail sale price is not relevant as it may differ from the MRP declared on the product. The appellant had also stock-transferred washing machines from higher MRP areas to lower MRP areas, indicating that the differential duty should be refunded to the assessee.

Issue 2: Waiver of pre-deposit and stay of recovery

As a result, the Tribunal ordered a waiver of pre-deposit and stay of recovery concerning the duty and penalty amounts, allowing relief to the appellant in this case.

*(Dictated and pronounced in open Court)*