9911796707
TMI Blog2000 (6) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... e package thereof the retail sale price of such goods, under the provisions of the Standards of Weights and Measures Act, 1976 on the rules, made thereunder or under any other law for the time being in force. The Central Government by issue of notification No. 18/98-C.E., (N.T.), dated 2-6-1998 has extended the provisions of Section 4A to Colour Television Sets (CTVs). 2. Under Rule 6 of Standards of Weights and Measures (Packaged Commodities) Rules, 1977 issued under the Standards of Weights and Measures Act, 1976, the manufacturers of CTVs have to print Maximum Retail Price (MRP) on the packages of the CTVs. 3. By Notification No. 50/1997-CE, dated 10-9-1997, the Central Government specified the colour Television Receivers fal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sets were offered for sale in retail, the price was being printed on the packages in their depots. Thus the printed price was the sole consideration for the sale of the CTVs. The Commissioner also dismissed the case of the party to pay duty on specific rate on the ground that in their case the retail price was not the sole consideration for sale as they were also supplying free VIP suit cases, cordless head phones and Video CD title along with the CTVs. Consequently, the Commissioner has confirmed a differential duty of Rs. 2,07,64,870.16 under Rule 9(2) of the Central Excise Rules, 1944 read with Section 11A of the Central Excise Act, 1944 on them. He has also imposed a penalty of equivalent amount on them under Section 11AC. He has furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Explanation to this notification to mean maximum price (MRP) at which the goods in packaged form may be sold to the ultimate consumers and price is the sole consideration for such sale. In other cases, the CTVs were subject to duty on specific rates depending on the screen size of the CTVs. 8. The ld. advocate appearing for the appellants contended that since they were offering free gifts with each CTV to the consumers, the price was not the sole consideration for such sale and therefore, their case would not fall in the 'retail sale price' clause of the notification and they have correctly paid the duty on screen sizes of the TVs under the clause 'other cases'. This position does not appear to be tenable. In terms of sub-section (c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lants pleaded before us that his clients were of bona fide belief that their case did not fall within the mischief of - 'the retail sale price being the sole consideration for such sale' clause of the notification for which they obtained the legal advice. It is further stated that they also approached the Central Excise authorities from the lowest to the highest stating their case to these authorities but no clarification was forthcoming. It is submitted that they paid duty at the specific rates based on the screen size of the CTVs in good faith and have even paid off the differential duty even before the Commissioner confirmed the demand against them. It is, therefore, argued that extended period of demand is not applicable to them and no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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