9911796707
TMI Blog1999 (7) TMI 683X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 of the Declaration. The petitioner is a manufacturer of glazed tiles which has its market in different states. It is stated that the prices vary from one state to another. It is stated that under sec. 3 the duty of excise could be levied at the rate set forth in the first Schedule to the Central Excise Tariff Act 1985. Section 4A of the Central Excise Act, 1944 refers to valuation of excisable goods with reference to retail sale price. It is pointed out that if on any excisable goods more than one retail sale price is declared the maximum of such retail price shall be deemed to be the retail/sale price for the purposes of this section, but it is to be on the basis of the declaration made on the package. It is submitted that whatever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 4a provides for valuation of excisable goods for the purpose of charging of duty of excise. Sec. 4A was inserted by finance act 1997 with effect from 14.05.1997 for valuation of excisable goods with reference to retail sale price. The commodities manufactured and sold by the petitioner are the goods liable for excise duty with reference to retail sale price. The provisions of the Act are as follows: Sec. 4A- Valuation of excisable goods with reference to retail sale price- (1) The Central Government may, be notification in the official Gazette, specify and goods, in relation to which it is required, under the provisions of the standards of weights and Measures Act, 1976 (60 of 19760 or the rules made there under or under any o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g valuation of goods assessable have been prescribed. Sub-rule (2A) was added with effect from 04.06.1999 and provides as under: (2A) Every assessee who produces, manufacture or warehouse goods notified under section 4A of the Act shall file with the proper officer a declaration in such form and in such manner and at such interval as the Central Board of Excise and Customs may specify, declaring the retail sale price of such goods, amount of abatement, if any on such sale price and such other particulars as may be specified by the said board. 4. In the proforman of declration which come into force from 01.07.1999. Chapter II of the Rules has made applicable the provisions, if the goods are packed and sold in retail sale. It is by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Customs. The central Board of Excise and Customs vide their circular dated 8.6.1999 have prescribed the particulars for performing of the declaration and made it effective from 1.7.1999. 6. According to the submission of the learned Counsel for the petitioner Note-2 to the proforma is under provision of Sec.4A and excise duty now sought to be recovered is on the maximum of retail sale price in different States. Even if less than 1% of the product is sold in one States at higher price than the petitioner would be subjected to excise duty on the rest of its goods manufactures produced foe the state of that higher price. The provisions of Rule 2A of Rule 173C are not in dispute of it is only Note 2 of the proforma, it is stated to be cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pears that the steps which have been taken in subjecting the goods to the excise duty of maximum of the retail sale price of different states s to check the duty Sub-sec.(4) of Section 4A though authorises the respondent for confiscation confiscation of goods is there is any, for obliteration or alteration in any of the declaration made on the packaging after removal that is the extra power which has been conferred if such contravention is made. 7. Normally the function of the explanation is to explain what is contained in the section or sub-section or same time the explanation should be a substantive provision. The validity of the explanation is not in dispute before me. To my mind explanation 2 is wide enough to cover different packagi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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