2005 (1) TMI 256 - AT - Central Excise

Summary

Issues involved: Assessment of goods under Section 4 vs. Section 4A of the Central Excise Act based on presence of MRP on packaging.

In the present appeal, the Revenue challenged the order by the Commissioner (Appeals) regarding the assessability of a package of 40 gm lays potato chips supplied free with a 1.5 litre Pepsi under Section 4 of the Central Excise Act for excise duty assessment. The Revenue contended that the goods should be assessed under Section 4A of the Act due to the requirement of affixing retail sale price on lay potato chips as per the Standards of Weights & Measures Act, 1976. The Revenue cited the decision in Nestle India Ltd. v. Commissioner to support their argument.

The Tribunal noted that the lays potato chips packet did not display an MRP and was labeled "free with 1.5 litre Pepsi and not for retail sale." Unlike the Nestle India Ltd. case where the price of KitKat was mentioned on the Pepsi bottle, the present case had distinct facts. Referring to the case of M/s. G.S. Enterprises v. CCE, Jaipur, the Tribunal held that goods distributed free without an MRP are assessable under Section 4 of the Central Excise Act, not under Section 4A. The Tribunal relied on Board Circular No. 625/16/2002-C.X., dated 28-2-2002 to support this interpretation.

The Tribunal found that the precedent set in the case of M/s. G.S. Enterprises was applicable to the current situation. Consequently, the appeal by the Revenue was deemed to lack merit, leading to its dismissal. The decision was pronounced and dictated in the open Court.