2013 (12) TMI 277 - AT - Central Excise

Valuation of Goods u/s 4A OR 4 of Central excise Act,1944 - Pet jars cleared as retail package and not as wholesale package -Waiver of pre-deposit and interest Held that - Relying upon SWAN SWEETS PVT. LTD. Versus COMMISSIONER OF C. EX., RAJKOT 2006 (1) TMI 269 - CESTAT, MUMBAI and ROYS INDUSTRIES LTD. Versus COMMISSIONER OF C. EX., HYDERABAD 2010 (9) TMI 257 - CESTAT, BANGALORE - the entire issue needs to be gone into detail as regards the definition of net quantity, multi piece package and retail package viz-a-viz a wholesale package, as mentioned in the SWM (Package Commodity) Rules, 1977 - in appellant s own case, the Tribunal had already held in their favour holding that these packages are not retail packages but whose sale package - the appellant has made out a case for the waiver of pre-deposit of the amount - Application for the waiver of pre-deposit of the amounts involved allowed till the disposal stay granted.

Summary

Issues:
Appeal for waiver of pre-deposit of Rs. 34,49,341/- and interest - Classification of pet jars as retail or wholesale package under Central Excise Act, 1944.

Analysis:
The appellant filed a stay petition seeking the waiver of pre-deposit of a confirmed amount along with interest. The appellate authority had confirmed the amount as payable, stating that the adjudicating authority had erred in classifying the pet jars cleared by the appellant as retail packages instead of wholesale packages. The duty liability was deemed to fall under Section 4A of the Central Excise Act, 1944, not Section 4. The appellant's counsel referred to the order-in-original and highlighted that the package in question should be considered a wholesale package. They cited a previous case where the Tribunal upheld their stance that the package was indeed wholesale. The departmental representative argued that the changed definition under the Standards of Weight and Measurement Acts also categorized the jars as retail packages. After considering both sides' submissions and reviewing the records, the Tribunal noted the need for a detailed examination of the definitions of net quantity, multi-piece package, retail package, and wholesale package under the SWM (Package Commodity) Rules, 1977. Referring to a previous case and the decision of the Larger Bench, the Tribunal found that if the definition of wholesale packages remained unchanged, the appellant's case was covered in their favor. Consequently, the Tribunal allowed the application for waiver of pre-deposit and stayed the recovery of the amounts until the appeal's disposal.