2008 (1) TMI 43 - AT - Central Excise

Valuation as per section 4 - The appellant valued the 210ltr barrel of lubricating oil as per section 4 but revenue contention is that valuation is being done as per section 4A Revenue contention rejected and allowed appellant appeal

Summary

Issues: Valuation under Section 4A of Central Excise Act for lubricating oil in 210 ltr. pack, requirement of MRP on wholesale packs, interpretation of Standards of Weight & Measures Act.

Analysis:
1. The appellant, engaged in manufacturing lubricating oil, paid duty based on MRP under Section 4A for retail packs. The dispute arose regarding the 210 ltr. pack, classified as wholesale, not requiring MRP. The adjudicating authority held it liable for duty under Section 4A.

2. Section 4A mandates duty payment for goods requiring MRP under Standards of Weight & Measures Act. The appellant argued the 210 ltr. pack, sold directly to customers, is wholesale and not subject to MRP. The Legal Metrology Department clarified that such packs fall under wholesale category and need not display MRP.

3. The Commissioner disregarded the clarification, deeming the 210 ltr. pack not a wholesale package. The Tribunal emphasized that the Metrology Department's decision on MRP requirement is final. Since the department confirmed no MRP necessity for 210 ltr. pack, Section 4A did not apply. The impugned order was set aside, granting relief to the appellant.