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TMI Blog2018 (1) TMI 720X X X X Extracts X X X X X X X X Extracts X X X X ..... ot required to affix the MRP, as per the provisions of Standards of Weights and Measures, Act 1976. Accordingly, the valuation of the goods in question cannot be governed by Section 4A. Whereas it is governed by Section 4 of the Central Excise Act, 1944. Appeal allowed. - Appeal No. E/740/08 - A/85021/2018 - Dated:- 11-1-2018 - Mr. Ramesh Nair, Member ( Judicial ) And Mr. Raju, Member ( Technical ) Shri. D. H. Nadkarni, Advocate for appellant Shri. Ajay Kumar, Addl. Comm. (AR) for respondent ORDER Per: Ramesh Nair 1. M/s.SAF Yeast Co. Pvt. Ltd., are the manufacturers of various types of yeast. The issue involved is that whether the yeast cleared in pack from the factory appearing a marking for industrial use onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ental authorities on the issue that the department has emphasized the valuation of the goods under Valuation Rules, 2000, which is nothing but assessment under Section 4 of the Central Excise Act, 1944. This shows that there is no suppression of fact or malafide on the part of the appellant. The issue involved is of interpretation of law which has reached upto the High Court. Therefore, the penalty cannot be imposed. 3. Shri Ajay Kumar, Ld. Additional Commissioner (AR) appearing on behalf of the Revenue reiterates the findings in the impugned order. 4. We have carefully considered the submissions made by both sides. Even though the commodity is notified under Section 4A of Central Excise Act, 1944 but to apply Section 4A it is necessa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d below: As indicated earlier the two parties have demonstrated through irrefutable evidence that the packing is marked For Industrial use only Specially made for bakery industry only and the composition of the products also establishes that they are industrial raw material. The nomenclature used is self evident in so far as its ultimate use is only for the baking industry It must also be observed that bakeries, viz., big, medium and small all have to be issued various licenses such as health department licence, factory licence etc. No rational retail consumer would buy something specifically directed towards an industry as a raw material- in this case the question does not arise as the products are unavailable for retail sale . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of the Standards of Weights and Measures Act, 1976, or the rules made thereunder, or under any other law for statutory requirement under the provisions of Weights and Measures Act to declare the retail sale price on the packages, Sect. 4-A will not apply. As for example, in respect of bulk sale of ice-cream to hotel/restaurants which are not meant for retail sales as such, the provisions of the Weights and Measures Act will not apply, Chapter V of the Weights and Measures ( Packaged Commodity) Rules, 1977 mentions the instances where MRP is not required to be printed on the packages. Thus, in these cases valuation will have to be done under Section 4 of the C.E. Act. 5. A somewhat similar issue was examined by the Broad earlie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... defences as may be available to them on merits of the valuation. In this view of the clarification, it is not necessary to entertain this petition. The petitioner is accordingly disposed of with no order as to costs. From the above proceedings, in particular, the order passed by the Hon ble High Court upholding the order dated 26/09/2005 of Government of Maharashtra, the issue has been settled that in the facts of the present case, the appellant is exempted from affixing MRP under Rule 34 of Standards of Weights and Measures (Packaged Commodities) Rules, 1977. Consequently, they are not required to affix the MRP, as per the provisions of Standards of Weights and Measures, Act 1976. Accordingly, the valuation of the goods in question ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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