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TMI Blog2023 (3) TMI 1419X X X X Extracts X X X X X X X X Extracts X X X X ..... oods imported. Hence, in law, the appellants have declared MRP only once i.e., when the goods were cleared from the Panvel warehouse - The scheme of the Section 4A provides for determination of the value on the basis of the declared MRP/ RSP at the time of clearance. It do not provide for re-determination of the MRP/ RSP by the revenue authorities at the time of clearance. The same can be done only in the manner and subject to the conditions as per Section 4A (4). The provision of Section 4A (4) do not get attracted, even if the case of revenue is that the imported goods were cleared on payment of duty on the basis of Adhoc value, which was higher than the declared MRP. The Adhoc value based on the thumb rule of 2.5 times the FOB value cannot be the declared MRP but a determined value for the specific purpose of the clearance of the goods by the customs authority at the port of importation. Further the goods cleared from the custom port have suffered manufacturing process as per the section 2 f of the Central Excise Act, 1944 and are not the same goods as cleared from the port. There are no merits in the impugned order - appeal allowed. - Hon ble Mr. Sanjiv Srivastava, Me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was utilized for payment of central excise duty on goods cleared domestically from the Panvel warehouse. 2.7 Show cause notices were issued to the appellants on the ground that where the actual MRP declared on the package is less than 2.5 times the FOB value', excise duty was payable on the amount which is 2.5 times the FOB value less abatement'. The Show cause notices solely relied on the Explanation 2(a) to Section 4A of the Central Excise Act, 1944, where more than one MRP is declared, the maximum of such MRPS shall be deemed to be the MRP for the purposes payment of duty and duty is to be discharged on the maximum of such MRP. 2.8 The two Orders-in-Original and common Order-in-Appeal confirmed the entire demand along with interest and penalty. 2.9 Aggrieved appellants have filed these appeals. 3.1 We have heard Shri Rajesh Ostwal, Advocate along with Shri Aditya Jain, Chartered Accountant for the Appellant and Shri Bhilegaonkar Deepak, Additional Commissioner, Authorized Representative for the revenue. 3.2 Arguing for the appellant learned counsel submits: Appellants have declared single MRP on the packages of automobile parts and accessories both at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time of clearance of the said goods declared the MRP of the goods being cleared by them and paid the duty after determining the same in the manner as prescribed. In all cases, there is single amount affixed as MRP on the package of the goods. There are never ever two amounts declared as MRP on the packages. The demand of differential duty has been confirmed in the present case on the assumption that from 18.3.2010 onwards the MRP declared on the goods imported by the appellants is '2.5 times the FOB value of goods' in cases where the actual MRP declared was less than 2.5 times the FOB value of goods under assessment. This assumption is factually incorrect and without any basis. 4.4 There is no provision either under the Standards of Weights and Measures Act, 1976 and rules made thereunder or under Central Excise Act, 1944 which empowers any authority to ignore the actual MRP affixed and declared on the package and re-determine the MRP in adhoc manner. 4.5 Explanation 2(a) to Section 4A is reproduced below: Explanation 2. For the purposes of this section, - (a) where on the package of any excisable goods more than one retail sale price is declared, the maximum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lar explanation also exists in provisions of section 4A of the Central Excise Act, 1944. The same is also reproduced below: Explanation 2. - For the purposes of this section, - (a) where on the package of any excisable goods more than one retail sale price is declared, the maximum of such retail sale prices shall be deemed to be the retail sale price; From the plain reading of the explanations. above, it is clear that the higher MRP is to be considered only when more than one MRP are affixed on the package of the articles. The SCN nowhere alleges that the impugned articles had two MRP on their packages at the time of clearance from their Panvel warehouse. The SCN only alleges that the MRP declared on the Bills of Entry at the time of importation of these articles was higher than that declared on the packages at the time of clearance from their Panvel warehouse. In this regard, I find that the said explanation nowhere makes any mention of the MRP declared on the bill of entry or any documents. The explanation only clarifies that if any package bears more than one MRP, then maximum of such declared MRPs is to be considered. In view of this, I find that the said exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or interest to be imposed on the noticee. 4.8 The scheme of the Section 4A provides for determination of the value on the basis of the declared MRP/ RSP at the time of clearance. It do not provide for re-determination of the MRP/ RSP by the revenue authorities at the time of clearance. The same can be done only in the manner and subject to the conditions as per Section 4A (4). Section 4A. Valuation of excisable goods with reference to retail sale price. - (4) Where any goods specified under sub-section (1) are excisable goods and the manufacturer- (a) removes such goods from the place of manufacture, without declaring the retail sale price of such goods on the packages or declares a retail sale price which is not the retail sale price as required to be declared under the provisions of the Act, rules or other law as referred to in sub-section (1); or (b) tampers with, obliterates or alters the retail sale price declared on the package of such goods after their removal from the place of manufacture, then, such goods shall be liable to confiscation and the retail sale price of such goods shall be ascertained in the prescribed manner and such price ..... X X X X Extracts X X X X X X X X Extracts X X X X
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