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TMI Blog2014 (7) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... Feb.'09 to Oct.'11 they supplied color television sets to M/s. ELCOT, Tamil Nadu (a Govt. of Tamil Nadu Undertaking). These color television sets had been supplied to M/s. ELCOT against a contract at a Per Unit Contract Price and the same were meant for free distribution by the Govt. of Tamil Nadu among the poorer sections of the population. M/s. ELCOT was to distribute the CTVs on behalf of the State Government. During the period of dispute, the color television sets were notified under section 4A of the Central Excise Act, 1944 and accordingly if in respect of the color television sets cleared by a manufacturer, Maximum Retail Price (MRP) was required to be declared on the same, in terms of the provisions of Standards of Weights ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4, which was the "Per Unit Contract Price" at which the appellant supplied the CTVs to M/s. ELCOT. On this basis a Show Cause Notice was issued to the appellant for demand of differential duty amounting to Rs. 7,65,73,219/- in respect of clearances of CTVs to M/s. ELCOT, Tamil Nadu, during the period from Feb.'09 to Oct.'11 along with interest thereon under section 11AB of Central Excise Act. 1944 and also for imposition of penalty on them under section 11AC ibid. Against this order of the Commissioner, this appeal has been filed along with stay application. 2. Heard both the sides. 3. Though the matter was listed only for the hearing of the stay application, after hearing the same for the sometime, the Bench was of the view that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory for production etc. but were meant for free distribution, that the Commissioner's finding that M/s. ELCOT are an "Institutional Consumer", as they have received CTVs for free distribution on behalf of Govt. of Tamil Nadu, is not correct, as the 'service' referred to in the definition of "Institutional Consumer" is the service industry like transportation including airways, railways or any other similar service industry and distributing TV sets among the poorer section of the population, on behalf of the Govt. of Tamil Nadu cannot be treated the 'service' referred to the definition of "Institutional Consumer", that in view of this, the Commissioner's finding that M/s. ELCOT is an "Institutional Consumer" and h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of CTVs sold to M/s. ELCOT. 7. In terms of Rule 2A(b) of the SWM Rules, the provision of Chapter II of these Rules would not apply to the packaged commodities meant for "Industrial Consumer" or "Institutional Consumer". In terms of explanation to this Rule, "Institutional Consumers'" means those consumers who buy packaged commodities directly from manufacturers/packers for service industry like transportation including airways, railways or any other similar service industry and "Industrial Consumers" means those consumers who buy packaged commodities directly from manufacturers/packers for using the same in their industry for production etc. The Department's contention is that M/s. ELCOT, Tamil Nadu, a Govt. of Tamil Nadu Undertak ..... X X X X Extracts X X X X X X X X Extracts X X X X
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