2011 (11) TMI 717 - AT - Central Excise

Summary

Issues involved: Applicability of notification No. 4/2006 granting partial exemption to goods of heading 2523 29, dispute regarding whether goods cleared for export purposes are in packaged form or not, interpretation of the 3rd proviso to Serial No. 1C of the notification.

The judgment by the Appellate Tribunal CESTAT NEW DELHI, delivered by Ms. Archana Wadhwa and Mr. Rakesh Kumar, addressed the application seeking dispensation with the pre-deposit of duty and penalty amounting to Rs. 68,71,803. The dispute centered around the applicability of notification No. 4/2006, which provides partial exemption to goods falling under heading 2523 29, whether manufactured in a mini cement plant or not.

The Tribunal examined the 3rd proviso to Serial No. 1C of the notification, which pertains to goods other than those declared in packaging form. It was noted that the goods cleared by the appellants for export were in packaged form. However, as per the proviso, if the retail sale price of the goods is not required to be declared under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977, the duty should be determined as for goods cleared in other than packaged form.

The dispute revolved around whether the goods cleared for export, which did not have a fixed MRP, should be considered as other than packaged form. The appellant argued that as per previous Tribunal decisions, exports are excluded from the Standards of Weights and Measures Act, 1976. Therefore, since the goods did not require an MRP as per the Act, they should be treated as other than packed form, attracting the concessional rate of duty under Serial No. 1C.

Given that the export goods did not bear an MRP and were not required to do so under the Standards of Weights and Measures Act, 1976, the Tribunal was inclined in favor of the appellant. Consequently, the condition of pre-deposit of duty and penalty was dispensed with, and the stay petition was allowed.

*(Pronounced in the open court)*