2016 (1) TMI 1296 - AT - Central Excise

Valuation - whether the assessee being a manufacturer of flashlight torches, is chargeable to duty under Section 4A in respect of institutional/industrial sales made by them instead of Section 4 as claimed by the assessee? - Held that - the issue is no more res-integra and the same have been decided in favour of the assessee by this Tribunal following the ruling of the Supreme Court in the case of Jayant Food Processing (P) Ltd. Vs. CCE., Rajasthan 2007 (8) TMI 3 - Supreme Court , where it was held that As SWM Act and Rules do not require fixing MRP on such dry cell batteries, the question of assessing the said goods in terms of provisions of Section 4A is ruled out - the sale/clearance made to institutional buyers shall be taxable under Section 4 and not under Section 4A of the Act - appeal allowed - decided in favor of appellant.

Summary

Issues involved: Determination of duty chargeability under Section 4A for institutional/industrial sales made by a manufacturer of flashlight torches.

Analysis:
- The issue in consideration is whether the assessee, a manufacturer of flashlight torches, should be liable to duty under Section 4A for institutional/industrial sales or under Section 4 as claimed by the assessee.
- The appellant's counsel presented a sample purchase order indicating the products were for promotional purposes and not retail sale, with clearance specified for industrial/institutional purposes. Additionally, the appellant had removed the MRP from goods sold to institutional buyers.
- Referring to a previous Tribunal order citing the Supreme Court ruling in Jayant Food Processing (P) Ltd. Vs. CCE., Rajasthan 2007, it was established that the issue had been settled in favor of the assessee. The Tribunal noted that similar cases had been decided in favor of the assessee based on the Supreme Court judgment, emphasizing that goods supplied as free gifts need not have an MRP printed on them.
- Given the precedent set by the Tribunal and the Supreme Court ruling, the Tribunal concluded that sales to institutional buyers should be taxed under Section 4, not Section 4A. Consequently, the appeal filed by the assessee was allowed, and all appeals by the Revenue were dismissed.

This detailed analysis of the judgment provides a comprehensive understanding of the legal issues involved and the Tribunal's decision based on relevant legal principles and precedents.