9911796707
TMI Blog2008 (2) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... India Ltd. is engaged in the manufacture of paints and varnishes which are the goods notified under Notification No. 13/2002-C.E. (N.T.), dated 1-3-2002 and are subject to assessment under Section 4A of the Central Excise Act, 1944 on the basis of MRP of the product. One of the products manufactured by the applicant is base material for paints which is intended to obtain colour range of over 5000 shades by tinting through a system called Berger Colour Bank Dispensing System, which are installed at the premises of their dealers. The applicant manufacture base material for paints and import the colourants on payment of CVD. The base paint is cleared from the factory in a packed tin, on payment of appropriate duty of excise on the basis of MR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commodities Rules, 1977 do not apply to them and therefore, the goods have to be assessed under Section 4 at the transaction value. The show cause notice accordingly demanded duty of Rs. 5,36,72,253/- which was confirmed by the Commissioner who also imposed penalty of equivalent amount. 4. Ld. advocate for the applicant submitted that the base material for paint is also a paint and is accordingly notified as a commodity required to be assessed on the basis of MRP as per Notification No. 13/2002-C.E. (N.T.), dated 1-3-2002 and finds mention at Sr. No. 20 of the Third Schedule to the Standards of Weights and Measures Act, 1976. Thus the provisions of Standards of Weights and Measures Act, 1976 are very much applicable to the paints includin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her this base material for paints is actually sold/meant for retail sale and, if so, is there any evidence to that effect, the ld. advocate submitted that though they are also sold by the dealers as such without any tinting of colourant, he failed to submit any evidence to this effect even though there was a specific allegation to this effect in the show cause notice along with a finding by Commissioner. 6. It was submitted that though they maintain that the base material for paint was covered by the Packaged Commodities Rules, 1977, and was therefore entitled to MRP based assessment, but if this plea is not acceptable then it was their submission that the extended period cannot be invoked in their case as in view of the specific Notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the value of the base paints from the retail sale price of the final products to the price affixed on the tins of the base paints. This alteration was never brought to the knowledge of the jurisdictional Central Excise authorities. The retail sale price of the final paints as well as the price affixed on the tin containers of the base paints were determined by the assessee themselves. They remained in the exclusive knowledge of the assessee and were never truly disclosed in the statutory returns filed by them under Rule 12 of the Central Excise Rules, 2002. When there was no sale at the retail price indicated on the tin containing base material paints to any customer, the MRP declared by them never existed and therefore, they have clea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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