2018 (6) TMI 563 - AT - Central Excise

Valuation - MRP Based valuation - sale of Refrigerators with Washing Machines & Colour Television with DVD Player in combo packs - Section 4A of the Central Excise Act, 1944 - Held that - In the appellant s own case for the earlier period the Hon ble Apex Court in CCE, PONDICHERRY VERSUS M/S ICON HOUSEHOLD PRODUCTS (P) LTD. 2016 (11) TMI 309 - SUPREME COURT OF INDIA has held that goods packed in combo which is being MRP on which the duty has been paid in terms of Section 4A of the Central Excise Act, 1944 after availing abatement, in that circumstances, the assessee is not required to pay duty on the separate MRP of the said goods - impugned order not sustainable - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Duty demand on goods sold in combo packs versus separately at MRP.
2. Interpretation of Section 4A of the Central Excise Act, 1944 regarding duty payment on combo packs.

Analysis:
Issue 1: The appellant challenged the duty demand imposed on goods sold in combo packs instead of separately at MRP. The appellant, engaged in manufacturing electronic appliances, sold Refrigerators with Washing Machines & Colour Television with DVD Player in combo packs. The Revenue argued that the duty should be paid on the individual MRP of each item in the combo pack, rather than the value of the combo pack. The Revenue demanded duty on the differential value of the combo pack compared to the separate sale price of the goods. The matter was adjudicated, and it was held that duty should be paid on the differential value. However, the appellant contended that they should pay duty on the combo pack value, as per Section 4A of the Central Excise Act, 1944.

Issue 2: The Tribunal considered the interpretation of Section 4A of the Central Excise Act, 1944 in this case. Referring to a previous judgment by the Hon'ble Apex Court in the appellant's own case, the Tribunal noted that goods packed in a combo with an MRP, on which duty has been paid after availing abatement under Section 4A, do not require duty payment on the separate MRP of the goods. The Tribunal held that since the issue was already decided in favor of the appellant in their previous case, the impugned duty demand was not sustainable. Consequently, the Tribunal set aside the order, allowing the appeal with consequential relief.

This judgment clarifies the application of Section 4A of the Central Excise Act, 1944 to goods sold in combo packs and the duty payment requirements in such scenarios. The Tribunal's decision was based on precedent and upheld the appellant's position regarding duty payment on combo packs, providing clarity on the issue for future cases.