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TMI Blog2023 (6) TMI 551X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 25.08.2010, out of which the first four items were assessed to CVD on the basis of retail sale price and the balance two items were assessed on the basis of transaction value. With regard to the fourth item, namely, adhesive (Power Bond A1), which was classified under CTH 3506 1000, the assessment of CVD was done on the basis of retail sale price and not on the transaction value. 3. It appears that subsequently, the appellant ascertained that they were not liable to pay CVD based on retail sale price for the said product falling under CTH 3506 1000. As such, they preferred an appeal before the lower appellate authority, who vide his impugned Order-in-Appeal No. 298/2013 dated 28.02.2013 rejected the appeal of the appellant. Aggrieved by the above Order-in-Appeal, the appellant preferred the above captioned appeal before this forum. 4. It was submitted by the appellant that levy of CVD on import of goods is made in terms of Section 3 of the Customs Tariff Act, 1975 and the first proviso to sub-section (2) of the said Section mandated that in respect of articles notified under sub-section (1) of Section 4A of the Central Excise Act, the retail sale price was required to be dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose of charging CVD i.e., whether under Section 4 or Section 4A of the Central Excise Act read with Section 3 of the Customs Tariff Act, 1975. 7.4.1 Shri M. Karthikeyan, learned Counsel appearing for the appellant, has advanced the argument that for the purpose of levying CVD on the basis of retail sale price declared on the package, the fundamental requirement is that the goods should be notified under Section 4A(1) of the Central Excise Act; the Notification No. 49/2008-C.E.(N.T.) issued under Section 4A(1) only notifies goods with the description "Prepared glues and other prepared adhesives, not elsewhere specified or included", covered under clause (a) above and falling under heading 3506 at Sl. No. 43. 7.4.2 It is his contention that since the imported goods in question fall under clause (b) above and are classified under Tariff Item No. 3506 1000, which is not in dispute, the same are not notified goods under Sl. No. 43 of the Notification No. 49/2008-C.E.(N.T.) and the imported adhesive would not attract levy of CVD based on the retail sale price declared on the package and hence, the goods are required to be assessed only on the basis of the transaction value. 7.5 It has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s glues or adhesives, not exceeding a net weight of 1kg. kg. 16% - Other : 3506 91 -- Adhesives based on polymers of headings 3901 to 3913 or on rubber: 3506 91 10 --- Based on latex, phenol formaldehyde (PF), urea formaldehyde (UF) and polyvinyl alcohol (PVA) kg. 16% 3506 91 90 --- Other kg. 16% 3506 99 -- Other: 3506 99 10 --- Synthetic glue with phenol urea or cresol (with formaldehyde) as the main component kg. 16% --- Prepared glues and other prepared adhesives not elsewhere specified or included: 3506 99 91 ---- Based on starch, gum, latex, PF, UF and PVA kg. 16% 3506 99 99 ---- Other kg. 16% 10. The dispute involved in this appeal is relating to the applicability of retail sale price based valuation to the imported adhesives which were classified under CTH 3506 1000. It is relevant in this connection to go through the impugned Notification No. 49/2008-C.E.(N.T.) dated 24.12.2008, the relevant portion of which is extracted below: - "Notification No. 49/2008-C.E. (N.T.), dated 24-12-2008 In exercise of the powers conferred by sub-sections (1) and (2) of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een that the same states Chapter Heading at four-digit level namely, 3506 [Col (2)] and the description reads "Prepared glues and other prepared adhesives, not elsewhere specified or included" [Col. (3)]. 11.3 The Learned Advocate appearing for the appellant has argued that the Chapter Heading 3506 of the Indian Customs Tariff has two parts, namely: - (a) Prepared glues and other prepared adhesives, not elsewhere specified or included; (b) Products suitable for use as glues or adhesives, put up for retail sale as glues or adhesives, not exceeding a net weight of 1kg. and that the goods covered under clause (a) above alone are notified at Sl. No. 43 of the aforesaid Notification. 12. The only issue, therefore, that has to be decided in this appeal is the applicability of Notification No. 49/2008-C.E.(N.T.) dated 24.12.2008 to the impugned goods i.e., imported adhesives including Power Bond A1 (adhesive). 13.1 A careful reading of the above Notification issued under sub-sections (1) and (2) of Section 4A of the Central Excise Act, 1944 makes it clear that it specifies the goods mentioned in Column (3) of the Table therein and falling under Chapter or heading or sub-heading or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the imported goods reads as under: - "Prepared glues and other prepared adhesives, not elsewhere specified or included; products suitable for use as glues or adhesives, put up for retail sale as glues or adhesives, not exceeding a net weight of 1kg." giving rise to a doubt as to whether the imported products, which are "glues or adhesives, put up for retail sale as glues or adhesives, not exceeding a net weight of 1kg.", are notified as specified goods under the impugned Notification or not. The appellant entertained the above doubt since in the impugned Notification, for certain Chapter Headings, at four-digit level, all goods were mentioned, which was not the case for the heading 3506. 14.3 In general, the provisions of the Legal Metrology Act/Standards of Weights and Measures Act or the rules made thereunder are applicable to all the goods, unless exempted, which are put up for retail sale in units / containers / packages. There is no doubt that the items under dispute in the instant appeal are 'adhesives' [including Power Bond A1 (adhesive)], put up for retail sale and were having a net weight not exceeding 1 kg. 15. A constructive reading of Chapter Heading 3506 along wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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