2003 (12) TMI 230 - AT - Central Excise

Summary

Issues involved: Valuation of white cement consignments under Section 4A of the Central Excise Act, 1944 for goods sold to builders, exemption from Packaged Commodities Rules under Rule 34, and applicability of Circular No. 625/16/2002.

Valuation under Section 4A: The appellants, manufacturers of White Cement, sold cement packets to stockists and builders. Revenue authorities contended that consignments sold to builders should also be valued under Section 4A based on the MRP marked on the 50 kg. packing. The appellants challenged this valuation, arguing that consignments sold for servicing an industry are exempt from Packaged Commodities Rules under Rule 34. They emphasized that cement packets for builders were not for retail sale, as marked on the packaging. The appellants also cited a circular by the Central Board of Excise & Customs and relied on Tribunal decisions to support their case.

Exemption under Rule 34: The Tribunal found merit in the appellant's submissions, noting that the goods were specifically packed for builders and intended for a particular industry, thus excluded under Rule 34 of the Packaged Commodities Rules. The Commissioner's rejection based on construction not being considered an industry was deemed incorrect, as construction is recognized as an industry under various statutes. The Tribunal also referenced the Circular of the Board and previous Tribunal decisions supporting the appellant's case, concluding that the original duty payments were correctly made and no short-levy was present, rendering the lower authorities' decisions unsustainable.

Decision: The appeals succeeded, and the impugned order was set aside, affirming the appellant's position regarding the valuation of white cement consignments and the exemption under Rule 34.