2013 (11) TMI 1209 - AT - Central Excise

Affixation of MRP as per Section 4A of CE Act 1944 Waiver of Pre-deposit - Held that - MRP need not be affixed on the goods, as these goods are cleared by them to institutional/industrial consumers and they are not required to affix MRP on the same as per the provisions of Standards of Weights and Measures (Packaged Commodities) Rules, 1977 as they are exempted as per the third proviso to Explanation (2) of the Sl. No.1C of the Notification No.4/2006 dated 1.3.2006 - Following Grasim Industries Ltd. vs. CCE, Jaipur 2003 (12) TMI 230 - CESTAT, NEW DELHI - the cement cleared to industrial/institutional consumers is not required to affix MRP and therefore, they are not required to discharge duty liability as per Section 4A of the Central Excise Act, 1944 - thus the applicant has made out a case for 100% waiver of pre-deposit stay granted.

Summary

Issues:
1. Waiver of pre-deposit of impugned demands sought by the appellants based on the nature of goods and applicability of MRP requirements.
2. Interpretation of provisions regarding affixing MRP on goods cleared to institutional/industrial consumers.
3. Determination of duty liability under Section 4A of the Central Excise Act, 1944 for goods cleared without MRP.

Analysis:
The appellants sought waiver of pre-deposit of impugned demands, arguing that the cement they manufactured, cleared to institutional/industrial consumers, did not require affixing Maximum Retail Price (MRP) as per the Standards of Weights and Measures (Packaged Commodities) Rules, 1977. The demands were confirmed based on the premise that the goods were notified and duty was to be paid under Section 4A of the Central Excise Act, 1944. The respondents contended that exemption from affixing MRP applied only to manufacturers, not to goods cleared from depots. The Tribunal noted that while the Rules define a manufacturer as one who packs goods, the Act considers the depot as the place of manufacture. Citing precedent, the Tribunal held that goods cleared to industrial/institutional consumers were not required to affix MRP, thus no duty liability arose under Section 4A. Consequently, the Tribunal granted 100% waiver of pre-deposit of the demands, staying recovery during the appeals' pendency.

This judgment delves into the complex interplay between the Central Excise Act, 1944, and the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 concerning the affixing of MRP on goods. It clarifies that for goods cleared from depots, the Act deems the depot as the place of manufacture, overriding the Rules' definition of a manufacturer. By analyzing the definitions and precedents, the Tribunal established that goods cleared to specific consumers were exempt from MRP requirements and duty liability under Section 4A. This decision underscores the importance of understanding statutory provisions and their application in determining liability and exemptions in excise matters.