2004 (6) TMI 130 - AT - Central Excise

Summary

Issues: Interpretation of Section 4A for valuation of goods under Central Excise Act, 1944.

Analysis:
1. The appeal was filed against the Order-in-Appeal dated 26th September, 2002, issued by the Commissioner of Appeals, Central Excise, Kolkata. The respondent did not appear despite notice. The Revenue argued that the Commissioner's interpretation of Section 4A did not align with a circular from the Board. The respondent, in a previous reply, admitted to not having retail sales or mentioning maximum retail prices for their goods. The assessee manufactured shoes based on bulk orders from government departments and did not file required declarations for MRP-based goods under the Central Excise Rules.

2. Upon reviewing the records and orders, it was found that the respondent admitted to not having retail sales or affixing maximum retail prices on the goods. The Ministry of Finance circular clarified that goods without MRP should be valued under Section 4 of the Central Excise Act, 1944. As the basic conditions for valuation under Section 4A were not met, the goods should be valued under Section 4. The Commissioner erroneously concluded that the goods should be assessed under Section 4A instead of Section 4, leading to the appeal being accepted and the original order being restored.

3. Consequently, the appeal was accepted, the Order-in-Appeal by the Commissioner of Appeals was set aside, and the Order-in-Original by the Adjudicating Authority dated 20th November, 2001 was reinstated.