2008 (1) TMI 45 - AT - Wealth-tax

Section 4A CEA will be applicable in respect of the goods distributed free to the consumer where the goods offered free do not declare the MRP Revenue s appeal dismissed

Summary

Issues involved:
1. Applicability of Section 4A of the Central Excise Act, 1944 to goods distributed free to consumers without declaring MRP.

Analysis:

The judgment by the Appellate Tribunal CESTAT AHMEDABAD, delivered by Member (Judicial) Mrs. Archana Wadhwa, addressed the issue of whether Section 4A of the Central Excise Act, 1944 would be applicable to goods distributed free to consumers without declaring the Maximum Retail Price (MRP). The Tribunal heard arguments from the learned SDR representing the Revenue, and noted that the respondent referred to a previous order of the Tribunal in their case where the Revenue's appeal was dismissed. The Tribunal acknowledged that the issue had been decided against the Revenue in the past. Furthermore, the Tribunal highlighted a subsequent judgment by the Hon'ble Supreme Court in the case of Jayanti Food Processing Pvt. Ltd. vs. CCE Rajasthan, which clarified that Section 4 provisions would indeed apply to goods supplied free to customers.

In light of the above, the Tribunal concluded that the appeal filed by the Revenue was to be rejected. The judgment emphasized the legal precedent set by the Supreme Court and the previous decision of the Tribunal in similar cases. The decision was based on the interpretation and application of relevant provisions of the Central Excise Act, 1944, specifically focusing on the applicability of Section 4A in situations involving the distribution of goods free to consumers without MRP declaration. The Tribunal's ruling aligned with the established legal principles and authoritative interpretation provided by the Supreme Court, ensuring consistency and adherence to the law in such matters.