9911796707
TMI Blog2007 (8) TMI 528X X X X Extracts X X X X X X X X Extracts X X X X ..... ing etc. of Graphic Art Film (GAF, for short) supplied by M/s. Agfa India (P) Ltd. during the material period. They cleared the job-worked product packed in cartons to Agfa's depot on payment of duty on the aggregate of cost of raw material and job charges determined under Section 4 of the Central Excise Act. In a show-cause notice dated 6-2-2006, the department demanded differential duty of Rs. 70,27,221/- [along with differential Education Cess] from them in respect of the goods cleared to Agfa depot and also proposed penalty on them. This demand was MRP-based under Section 4A of the Central Excise Act. It was contested by the appellants by submitting that the subject goods was covered by the exemption under Rule 34 of the Standards of We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any industry, mine or quarry. It is not in dispute that GAF is a commodity to which the provisions of the Standards of Weights and Measures (Packaged Commodities) Rules are applicable if the exemption under Rule 34(a) thereof is not available to it. The packages in question carried the marking "this film is specially packed for the exclusive use of Printing and Publishing Industry as a raw material". It is on this basis that they have claimed exemption under Rule 34(a) ibid from MRP-based levy of duty of excise. According to the Revenue, as the goods manufactured by the appellants were not directly sold to industrial consumers, the benefit of Rule 34(a) would not be available to them. To this, the appellants' answer is that there was no le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... distinguish the case of Hindustan Lever Ltd. (supra) from the present case. He has also pointed out that Rule 2A was amended by Notification dated 17-7-2006 with effect from 13-1-2007. Where prospective effect was specified in the amending Notification, there is no question of giving retrospective effect to the amended provisions. In this connection, learned counsel has relied on the Tribunal's decision in Mahindra & Mahindra Ltd. v. CCE, Mumbai - 2007 (211) E.L.T. 481 (Tri.- Mumbai). Referring to the submission of learned SDR that the appellants were paying duty in terms of Section 4A of the Central Excise Act prior to the period of dispute, learned counsel has submitted the appellants are not estopped from claiming assessment for the per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... industrial consumers buying packaged commodities indirectly from the manufacturers/packers also fell within the ambit of the expression "industrial consumers" contained in Rule 2A as also in Rule 34(a). This legal position was laid down by the Tribunal in the case of Controls & Switchgears Contractors Ltd. (supra). In that case also, the question was whether the assessee's product was to be charged to duty of excise in terms of Section 4 or in terms of Section 4A. The goods were sold directly to industrial consumers as well as through a network of dealers. The assessee had claimed exemption under Rule 34(a) on the ground that their goods were meant for exclusive use of industries as a raw material. The Tribunal held that, as the marking on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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