2005 (3) TMI 762 - AT - Central Excise

Summary

Issues:
1. Assessment of duty on lipsticks weighing less than 10 gms under Section 4A of the Central Excise Act.
2. Interpretation of Rule 34(1)(b) of the Standards Weights and Measures (Packaged Commodities) Rules, 1977.
3. Applicability of the Tribunal's decision in CCE, Daman v. Kraftech Products Inc. to the current case.

Analysis:
1. The Revenue contended that lipsticks weighing less than 10 gms should be assessed under Section 4A of the Central Excise Act since they are sold by numbers, not by weight. However, the Respondent argued that such lipsticks are exempted under Rule 34(1)(b) of the Standards Weights and Measures (Packaged Commodities) Rules, 1977 and should be assessed under Section 4. The Tribunal's decision in CCE, Daman v. Kraftech Products Inc. was cited to support this argument, stating that goods packed in multi-piece packages with a total weight of content less than 10 gms are assessable under Section 4 of the Central Excise Act.

2. Rule 34(1)(b) of the Standards Weights and Measures (Packaged Commodities) Rules, 1977 exempts packages with a net weight of 20 gms or less if sold by weight or measure. The Tribunal's previous ruling clarified that this exemption applies to packages with a total weight below the specified limit, as in the case of the herbal hair dye packed in sachets. In the current case, where the net weight of the lipstick is less than 10 gms, the exemption under Rule 34(b) is deemed applicable, leading to the assessment of duty under Section 4 of the Central Excise Act.

3. The Tribunal found no dispute regarding the weight of the lipstick being less than 10 gms, thereby affirming the applicability of the exemption under Rule 34(b) of the Standards Weights and Measures (Packaged Commodities) Rules, 1977. Consequently, the Tribunal dismissed the appeals, stating that the impugned order had no infirmity and upheld the exemption under Rule 34(b) for goods with a net weight below the specified limit. The decision was made in line with the precedent set by the Tribunal in similar cases, ensuring consistency in the assessment of duty for products falling within the specified weight range.

This detailed analysis of the judgment highlights the interpretation of relevant rules, the application of previous precedents, and the final decision reached by the Tribunal in resolving the issues raised in the appeals regarding the assessment of duty on lipsticks weighing less than 10 gms.