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2018 (11) TMI 564 - AT - Central ExciseMethod of valuation - supply of goods to the J & K Police authorities - Section 4A of the Central Excise Act, 1944 - Held that - The assessee-Respondents have supplied the shoes to J & K Police authorities in terms of bulk order. As the institutional supplies are not covered by MRP valuation under Section 4A, valuation cannot be done u/s 4A - appeal dismissed - decided against Revenue.
Issues:
Interpretation of Central Excise duty on goods supplied to institutional consumers under Standards of Weight & Measures (Packaging Commodity) Rules, 1977. Analysis: The appeal was filed by the Department against the Order-in-Appeal passed by the Commissioner of Central Excise (Appeals), Chandigarh-II. The case involved the manufacture and supply of shoes subject to Central Excise duty to J & K Police authorities under a bulk purchase order. The Revenue contended that the goods should be assessed under Section 4A of the Central Excise Act, 1944 due to the application of Standards of Weight & Measures (Packaging Commodity) Rules, 1977. However, the impugned order held that these rules were not applicable to supplies made to institutional consumers like the J & K Police authorities. The Department challenged this decision in the present appeal. During the hearing, both sides presented their arguments. The Revenue's main contention was that the shoes should be subject to MRP labeling and clearance, necessitating the adoption of Section 4A for duty payment. The impugned order analyzed the provisions of Standards of Weight & Measures (Packaging Commodity) Rules, 1977 and concluded that as the shoes were supplied to institutional consumers under a bulk order, MRP valuation under Section 4A did not apply. The Tribunal found the reasoning in the impugned order to be correct and upheld the decision, stating that institutional supplies are not covered by MRP valuation under Section 4A. Consequently, the appeal filed by the Department was dismissed. In conclusion, the Tribunal ruled in favor of the assessee-Respondents, affirming that the goods supplied to institutional consumers like the J & K Police authorities were not subject to MRP valuation under Section 4A of the Central Excise Act, 1944. The decision was based on the specific circumstances of the case and the provisions of the Standards of Weight & Measures (Packaging Commodity) Rules, 1977. The appeal filed by the Department was therefore dismissed, and the original order-in-appeal was upheld.
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