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TMI Blog2019 (6) TMI 1244X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise officers in the premises of appellant on 23 July, 2012, it was noticed that the appellant have been engaged in the manufacture of wall putty, decorative white cement, cement paints etc. using brand name of other persons. The department has been of the view that since the appellant have been using the brand name of other persons they should have got themselves registered with the Department since inception in July, 2011 and should have paid Central Excise duty on clearances of branded goods. It has also been the contention of the Department that the total value of the clearances effected by the appellant in a particular financial year was much more than the threshold limit set for availing exemption of SSI notification and, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmation of same by the adjudicating authority. It has been the contention of the appellant that goods manufactured and cleared under the brand name of "Diamond Gold" is of superior quality, hence the MRP price are higher for "Diamond Gold" brand and the goods which are manufactured under the brand of 'Suraksha Gold' and products without any brand are comparatively of the lower quality and as a result, the MRP of these two products are on the lower side to that of 'Diamond Gold' Brand. Thus, it was stressed that the adjudicating authority has wrongly taken price of superior grade putty for valuing the lower grade putty. It has also been contended that they are eligible for SSI notification benefit for the financial year 2012-2013 as agg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heading 3214 is specified under Notification No. 49/2008 CE (NT) dated 24.12.2008, the Department has proposed that the assessment of white cement has to be as per the provisions of section 4A of the Central Excise Act. The learned advocate further has contested that the white cement is not classifiable under heading 3214 but probably under Chapter heading 2523 2100 of the Central Excise Tariff Act, 1985 and therefore, the assessment of white cement on the basis of MRP price is legally not proper. Learned advocate has also mentioned that as per the provisions of Rule 3 of the Legal Metrology (Packaged Commodities) Rules, 2011, MRP is not required to be printed on packages containing quantities of more than 25 Kgs (except Cement and Fertiliz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive white cement and other exterior cement paints which are generally classifiable under section 32 of Central Excise Tariff Act, 1985. It is also a matter of fact and record that during the visit of officers at the factory premises on 23.07.2012 certain quantities of wall putty, decorative white cement of brand name 'Diamond Gold' and 'Suraksha Gold' were found lying in the factory premises and same were seized under section 110 of Customs Act, 1962. Shri Rajesh Singh, Production Supervisor of the appellant in his statement dated 24.07.2012 recorded under section 14 has voluntarily admitted that the appellant firms / factory at the given premises was running for seven to eight months and it was admitted that the unit was manufacturing wal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng necessary inquiries that these parties have been found as non-existing or there is manufacturing activity of such kind of goods. 8. Thus, we find that the investigations have brought it out very firmly and categorically that the appellants have been engaged in the manufacture of wall putty and decorative white cement and other cement paints etc. They have also been found using brand name 'Diamond Gold' belonging to other person namely M/s. Diamond Waterproof Compound Pvt. Ltd. and even during the investigation, they have tried to mislead the proceedings by stating that the goods are being got manufactured on job work basis from some other manufacturers, however, it has been established that the goods were being manufactured by the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 145 5 Kg 'suraksha' decorative white cement 145 10. From the above, it can be seen that the price of 'Diamond Gold' brand as well as for 'Suraksha Gold' brand for 40Kgs packing of wall putty is same at Rs. 1050/-. The appellants have failed to adduce any concrete evidence to contradict the above findings of the adjudicating authority. We therefore, do not find anything wrong in adopting the MRP which was found mentioned on the packing of finished goods which was put for seizure at the factory premises of the appellant for deciding the effective rate of clearance for the relevant financial years. We do not find any illegality in the seizure and confiscation of finished goods valued at Rs. 14,14,350/- under Rule 25 of the Central Excis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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