2007 (9) TMI 483 - AT - Central Excise

Summary

Issues:
1. Challenge to the order of Commissioner (Appeals) regarding demand on AA Size Pencil Battery.
2. Dispute over affixing retail price on goods cleared by the appellant.
3. Interpretation of Sections 4 and 4A of the Central Excise Act.
4. Applicability of circular dated 28-2-02 in determining duty liability.

Issue 1:
The appellant challenged the Commissioner (Appeals) order confirming the demand on AA Size Pencil Battery sold in bulk during a specific period. The appellant had discharged duty liability under Section 4 of the Central Excise Act. The revenue disputed this, citing the goods' notification for affixing retail sale price under the Standard Weight and Measures Act. The key issue was the appellant's failure to affix the mandatory retail price on the goods' packages.

Issue 2:
The Departmental Representative relied on a Larger Bench order emphasizing the irrelevance of transaction price under Section 4A for goods' valuation. The appellant, however, cited a Supreme Court judgment overruling a Tribunal order, highlighting the requirement to assess excise duty based on the MRP declared on goods. The Tribunal noted the need to satisfy conditions under the SWM Act before applying Section 4A(1) to assess duty.

Issue 3:
The Tribunal analyzed the interplay between Sections 4 and 4A, asserting that trade practices should not be disadvantaged due to the boundaries between the two sections. Referring to a circular acknowledging the potential for assessing the same commodity under both sections, the Tribunal found the appellant's case justified for waiver of duty and penalty. It was concluded that no pre-deposit was necessary for the appeal's hearing, and the application was disposed of accordingly.

This judgment delves into the complexities of excise duty assessment under Sections 4 and 4A, highlighting the importance of complying with statutory requirements such as affixing retail prices on goods. It also emphasizes the need for a balanced approach that considers trade practices and relevant legal interpretations, ultimately leading to a decision in favor of the appellant based on the specific circumstances and legal precedents cited during the proceedings.