2017 (4) TMI 494 - AT - Central Excise

Valuation - repellent bottle supplied for free along with the machine - The appellant was discharging excise duty on combipack on the MRP declared on the said combipack after abatement - the department was of the view that the appellant has not included the value of the refill and has discharged the excise duty on only the MRP of the machine itself - Held that - the appellant had paid duty on MRP thereon and machine is also be in combipack and price of the combipack is written on the packages of the combipack - the decision of M/s Icon Household Products Pvt. Ltd. 2007 (7) TMI 24 - CESTAT, CHENNAI is squarely applicable to the facts of this case, where the Tribunal observes that assessment is to be being on the basis of assessment of the combipack and the LVD supplied free in the multipack need not be separately assessed to duty, and MRP printed on the combipack should considered - demand set aside - appeal allowed - decided in favor of assessee.

Summary

Issues:
Appeal against differential duty, interest, and penalty imposed on appellant for non-inclusion of refill value in excise duty calculation on combipack.

Analysis:
The appellant, engaged in manufacturing Electro Thermic Appliances and Mosquito repellent, cleared goods in a combipack scheme with a machine and a refill bottle. Duty was paid based on the machine's MRP only. Department alleged non-inclusion of refill value, issuing a show cause notice leading to confirmed demands. Appellant cited a similar case before the Tribunal and Apex Court, arguing against sustainability of demands due to limitation and similarity with the precedent.

The Tribunal reviewed the case of M/s Icon Household Products Pvt. Ltd., where duty assessment was based on the combipack MRP, not separately on the free item. The Apex Court affirmed this decision. Appellant's counsel heavily relied on this precedent, emphasizing the similarity in facts and assessment principles. The Tribunal agreed, holding that duty assessment should be on the combipack basis, as the machine and refill were part of the same pack with a declared price. Consequently, the impugned order was set aside, and the appeal allowed with any consequential relief.

In conclusion, the Tribunal's decision aligned with the precedent, emphasizing the assessment based on combipack MRP for duty calculation when free items are included. The judgment provided clarity on valuation principles for such schemes, ensuring consistency in excise duty assessment on bundled products.