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TMI Blog2019 (7) TMI 558X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 4(3)(c) and 4(3)(d), which are definitions, are not a substitute authority for imposing duties or computing assessable value for determination of liability. They are intended to be superimposed on the corresponding words in section 4(1) of Central Excise Act, 1994 for ascertaining conformity of the transaction with scope for accepting the transaction value before resort to one or the other of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. In the absence of invoking of such provision, in the show cause notice or reference to in the orders of the authorities below, we are unable to consider the submission made by Learned Authorised Representative - the differential duty liability and interest thereon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir various factories are brought to the quick matching centre (QMC) at Lower Parel, Mumbai on stock transfer and, after manually inter-mixing of concentrates and additives to cater to the customized requirements of printers, are dispatched to the customers. 2. It is the claim of the central excise authorities that the definition of transaction value under section 4(3)(d) of Central Excise Act, 1944 requires that assessable value for computing duties should incorporate the cost of services rendered by the appellant at the quick matching centre as well as the packing surcharge recovered from customers on clearance from the quick matching centre. He also submits that, on persuasion by the central excise authorities, the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge on small packing of 300 gms., 500 gms. Of printing inks sold from their QMC. The said packing surcharge is levied to recover extra cost (labour, cost of container, label, tape etc.) incurred on such small packing. The surcharge on small packing is ₹ 30/- per kg. per ltr. for500 for 500 gm/ml tin on the list price and ₹ 40/- per kg/ltr for 300 gm/ml tin on the list price. The said packing surcharge recovered is also an additional consideration, which forms part of transaction value as per Section 4(3)(d) ibid. Chapter Note 7 to Chapter 32 provides that in relation to products of tariff items 3204 and 3206, labeling, re-labeling of containers and repacking from bulk packs to retail packs or the adoption of any treatment to rend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edule to the Central Excise Tariff Act, 1985 and that the appellant had surreptitiously removed the goods as printing ink , classifiable under heading no. 3215 of the First Schedule to the Central Excise Tariff Act, 1975, with clear intent to suppress the manufacturing activity at the quick matching centre from where the finishing product, emerging therefrom, i.e. printing ink, was cleared to the ultimate customers without payment of duty and that this was in clear violation of the provisions of section 4(3)(c) defining place of removal and 4(3)(d) defining transaction value . According to him, the place of removal was the quick matching centre and hence the transaction value should have been that which was recovered from the cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o with creation of such jurisdiction by invoking the appropriate provisions in the show cause notice. We are clear that the provisions of section 4(3)(c) and 4(3)(d), which are definitions, are not a substitute authority for imposing duties or computing assessable value for determination of liability. They are intended to be superimposed on the corresponding words in section 4(1) of Central Excise Act, 1994 for ascertaining conformity of the transaction with scope for accepting the transaction value before resort to one or the other of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. In the absence of invoking of such provision, in the show cause notice or reference to in the orders of the authorities below, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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