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2011 (10) TMI 132 - AT - Central ExciseManufacture of sugar confectionary - Department has taken a view that the goods have to be assessed on the basis of MRP and not under Section 4 of Central Excise Act, 1944. Ld. - Hon ble Supreme Court in Makson Confectionery Pvt. Ltd. (2010 -TMI - 77501 - SUPREME COURT) has upheld the decision of the Tribunal and has taken a view that the Toffee/Candy weighing less than 10 gms sold in packages of 100/200 in wholesale pack to be re-opened and sold in retail have to be assessed under Section 4 of Central Excise Act, 1944 only and not under Section 4A - appeal filed by the Revenue has no merits and accordingly rejected.
Issues:
1. Assessment of goods based on MRP vs. Section 4 of Central Excise Act, 1944. Analysis: The case involved a dispute regarding the assessment of Toffee/Candy weighing less than 10 gms for excise duty purposes. The Department argued that the goods should be assessed based on Maximum Retail Price (MRP) rather than under Section 4 of the Central Excise Act, 1944. The Tribunal noted that the Department had initially accepted the order in a similar case but later proposed to challenge it before the Supreme Court. However, the Hon'ble Supreme Court in the case of CCE Rajkot Vs Makson Confectionary Pvt.Ltd. held that such goods sold in wholesale packs and later sold in retail should be assessed under Section 4 of the Central Excise Act, 1944. The Tribunal found that this decision by the Supreme Court covered the issue at hand, and since the matter had already been decided in favor of the respondents for a different period, the appeal by the Revenue was rejected. The Tribunal emphasized that the decision of the Hon'ble Supreme Court in the case of CCE Rajkot Vs Makson Confectionary Pvt.Ltd. was applicable to the present case. The Supreme Court's ruling clarified that Toffee/Candy weighing less than 10 gms, sold in wholesale packs and subsequently in retail, should be assessed under Section 4 of the Central Excise Act, 1944, and not under Section 4A. This decision was crucial in determining the correct assessment method for such goods, resolving the dispute raised by the Revenue regarding the assessment based on MRP. The Tribunal concluded that since the Supreme Court had already decided the issue in favor of the respondents for a different period, the appeal lacked merit and was therefore rejected. The Tribunal's decision was based on the precedent set by the Hon'ble Supreme Court in the case of CCE Rajkot Vs Makson Confectionary Pvt.Ltd., which established the correct method of assessing Toffee/Candy weighing less than 10 gms sold in wholesale packs and later in retail. By upholding the Tribunal's decision in the mentioned case, the Supreme Court provided clarity on the assessment process under the Central Excise Act, 1944, for such goods. This legal interpretation was crucial in settling the dispute between the Revenue and the respondents, ensuring consistency and adherence to the established legal framework for excise duty assessment.
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