2004 (5) TMI 221 - AT - Central Excise

Summary

Issues involved: Interpretation of Rule 34 of the Standards of Weights and Measures (Packaged Commodity) Rules, 1977 regarding exemption from declaring M.R.P. for small packages containing multiple units.

Summary:

Issue 1: Exemption under Rule 34 and operation of Section 4A of the Central Excise Act, 1944
The dispute revolved around whether packages of "Godraj Permanent Powder Hair Dye" and "Godrej Kali Mehendi," each containing 3 units with combined weight less than 10 gms, are exempt from declaring M.R.P. under Rule 34 and consequently from Section 4A of the Central Excise Act, 1944. The respondents claimed exemption from M.R.P. declaration under the rule and argued for assessment under Section 4 of the Act. The Commissioner (Appeals) upheld their claim.

Issue 2: Interpretation of Rule 34 for packages with multiple units
The Departmental appeal contended that Rule 34 exemption does not apply when multiple units are packed together. However, upon examining the rule, it was found that the exemption applies to any package with a commodity net weight of 20 gms or less. The Tribunal concluded that the combined weight of the 3 units being less than 20 gms, the respondents were rightly eligible for exemption under Rule 34. Consequently, they were entitled to assessment under Section 4 of the Central Excise Act, 1944, instead of Section 4A.

Conclusion:
Based on the interpretation of Rule 34 and the weight criteria, the Tribunal dismissed the department's appeal, affirming the respondents' eligibility for exemption and assessment under Section 4 of the Central Excise Act, 1944.