2007 (7) TMI 560 - AT - Central Excise

Summary

Issues:
1. Assessment of 210 ltr. barrels of lubricating oil under Section 4 or Section 4A of the Central Excise Act, 1944.

Analysis:
The judgment by the Appellate Tribunal CESTAT, Ahmedabad, involved a dispute regarding the assessment of 210 ltr. barrels of lubricating oil under the Central Excise Act, 1944. The Adjudicating Authority did not agree with the appellant's argument that the barrels should be considered wholesale packages exempt from affixing Maximum Retail Price (MRP) under Rule 2(x)(ii) of the Standards of Weights and Measures (Packaged Commodity) Rules, 1977. Consequently, the Authority classified the barrels as retail packages necessitating MRP affixation and assessment under Section 4A.

The Tribunal noted a clarification from the Controller of Legal Metrology, Chennai, stating that 210 ltr. barrels should be treated as wholesale packages not requiring MRP affixation. Despite this clarification, the Commissioner proceeded to adjudicate based on the definition of wholesale packages under the Standards of Weights and Measures (Packaged Commodity) Rules, 1977. It was acknowledged that no MRP was to be affixed on the barrels, and if MRP affixation was mandatory, authorities would have taken action under the Standards of Weights and Measures Act. Section 4A mandates the declaration of retail sale price on specified goods, which was not done in this case as confirmed by the Controller of Legal Metrology. Consequently, the Tribunal found merit in the appellant's case and unconditionally allowed the stay petition, scheduling the appeal for final disposal on a specified date.

In conclusion, the judgment resolved the issue of whether the 210 ltr. barrels of lubricating oil should be assessed under Section 4 or Section 4A of the Central Excise Act, 1944. The Tribunal considered the absence of mandatory MRP affixation, the Controller of Legal Metrology's clarification, and the provisions of the Standards of Weights and Measures Act to rule in favor of the appellant, granting a stay and setting a date for final disposal of the appeal.