2015 (9) TMI 466 - SC - Central Excise

MRP based valuation u/s 4A - accessories - woofer is not a part of Television set and that they are being cleared and sold separately. This was the case prior to introduction of assessment under Section 4A(MRP). The MRP based assessment is for television set and not for its accessories. - order of the tribunal 2005 (12) TMI 149 - CESTAT NEW DELHI sustained - Decided against the revenue.

Summary

Issues:
- Interpretation of MRP based assessment on accessories in relation to colour TVs.

Analysis:
The Supreme Court judgment pertained to an appeal arising from an order passed by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT). The specific issue under consideration was whether the MRP based assessment applied to accessories, particularly woofers, related to AKAI brand colour TVs. The show cause notice alleged that woofers were an integral part of the colour TVs, thus subject to MRP based assessment. However, the respondent contended that woofers could function independently and were not integral parts of the TVs. The Adjudicating Authority accepted this contention, leading to the dismissal of the show cause notice. The Tribunal also upheld this decision, stating that the MRP based assessment was for the television set itself and not its accessories like woofers. The Tribunal found that woofers were being cleared and sold separately, therefore meriting valuation under Section 4 of the Central Excise Act. The Tribunal's findings were considered as pure findings of fact in favor of the assessee, leading to the dismissal of the appeal by the Supreme Court. The judgment emphasized the distinction between MRP based assessment for the main product and separate valuation for its accessories, highlighting that the MRP based assessment did not extend to accessories like woofers in this case.