2000 (8) TMI 199 - AT - Central Excise

Summary

Issues:
1. Whether the appellants, as manufacturers of color television sets, are required to pay duty on the maximum retail price under Section 4A.
2. Whether the appellants are entitled to the benefit of Modvat credit in respect of inputs without filing a declaration under Rule 57G.

Analysis:

Issue 1:
The first issue revolves around the applicability of Section 4A to the appellants, who manufacture color television sets. The Revenue contended that the appellants had not declared the maximum retail price and therefore were not entitled to pay duty under Section 4A. However, the appellants argued that Section 4A is mandatory for excisable goods like television sets, and no option exists to opt out of it. The Tribunal concurred with the appellants, citing the mandatory nature of Section 4A and the Tribunal's previous decision in the case of Bata India Ltd. The Tribunal held that the appellants must pay duty on the maximum retail price, subject to abatement, as allowed in the Notification. Consequently, the Tribunal set aside the demand for differential duty on the television sets.

Issue 2:
The second issue pertains to the Modvat credit claimed by the appellants in respect of inputs without filing a declaration under Rule 57G. The appellants argued that they had sent a declaration under Rule 57G, followed by another declaration and a request for condonation of delay. The Tribunal noted that the Assistant Commissioner had not considered the appellants' representations before disallowing the Modvat credit. The Tribunal remanded the matter to the Assistant Commissioner to first decide on the appellants' application and consider the guidelines issued by the Board. The Tribunal set aside the order disallowing the Modvat credit and partially allowed the appeal, remanding it for further consideration.

In conclusion, the Tribunal ruled in favor of the appellants on both issues, affirming the mandatory application of Section 4A for duty payment on maximum retail price and directing a reconsideration of the Modvat credit issue by the Assistant Commissioner.