2005 (6) TMI 129 - AT - Central Excise

Summary

Issues:
Appeal against order of CCE (A) on assessment of "Sugar free Tablets & granules" under Section 4A of Central Excise Act for clearance of samples. Interpretation of legal requirement for MRP declaration on goods declared as samples. Applicability of Standards of Weights and Measures Act, 1976. Compliance with Board's Circular No. 625/16/2002-CX. Interpretation of Rules on MRP declaration under Standards of Weight and Measures (Package) Commodities Rules, 1977. Assessment under Section 4 vs. Section 4A of Central Excise Act.

Analysis:

1. The appeal was filed by the Revenue against the order of CCE (A) regarding the assessment of "Sugar free Tablets & granules" under Section 4A of the Central Excise Act for clearance of samples during April 2001. The CCE (A) set aside the order of the lower authority, stating that the MRP declaration on the product was not a legal requirement as the goods were declared as samples, not for sale. The matter was further examined, revealing discrepancies in the MRP declarations on the goods meant for sale compared to the samples provided. The Revenue contended that Section 4A would be applicable if there was a statutory requirement under the Weights & Measures Act to declare retail sale price on the package, which was not the case for goods in dispute. The Tribunal found no infirmity in the CCE (A) orders, ultimately rejecting the Revenue's appeal.

2. The respondent's advocate relied on Rule 3 of the Standards of Weight and Measures (Package) Commodities Rules, 1977, which states that MRP declaration is mandatory for packages intended for retail. It was argued that since no MRP was printed on the free samples, the exemption under Rule 3 applied, and assessments under Section 4A were not warranted. The Tribunal, after reviewing the rules and Board's instructions, concluded that the absence of MRP on the free samples justified the application of Section 4 for value determination and ad valorem duty payment, as no objection from the State Government authorities regarding MRP printing was raised. Therefore, the Tribunal upheld the CCE (A) order, rejecting the Revenue's appeal.

3. The Tribunal's decision was based on the interpretation of legal requirements for MRP declaration on goods declared as samples, the applicability of the Standards of Weights and Measures Act, 1976, and the compliance with relevant circulars and rules governing MRP declarations. The distinction between assessments under Section 4 and Section 4A of the Central Excise Act was crucial in determining the proper assessment method for the goods in question. Ultimately, the Tribunal found no fault in the CCE (A) orders and rejected the Revenue's appeal, emphasizing the importance of adherence to statutory requirements and established procedures in excise assessments.