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TMI Blog2024 (7) TMI 678X X X X Extracts X X X X X X X X Extracts X X X X ..... Credit Rules, 2004. The toilet soaps are notified and are to be assessed to central excise duty under Section 4A read with Notification No. 13/2002-CE (NT) dated 01.03.2002 of the Central Excise Act, 1944, for valuation on the basis of MRP printed on the said goods. 2. The brief facts of the case are, on scrutiny of the self-assessed Excise Return ER-1, it was observed that the appellant cleared toilet soaps to Canteen Stores Department (CSD), Ministry of Defence on adoption of assessable value (transaction value) in terms of Section 4 of the Central Excise Act, 1944. A show-cause notice was issued alleging that; valuation of goods shall be under Section 4A of the Central Excise Act, 1944 in respect of those cases, where the manufacturer i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion in Jayanti Food Processing (P) Ltd., Vs. CCE, 2007 (215) ELT 327 (SC), are not liable to be assessed under Section 4A of the Central Excise Act, 1944; for application of the provisions of Section 4A of the Act it is not only enough the goods are notified under Section 4A of the Central Excise Act, 1944 but also they are required to be affixed with maximum retail sale price (MRP) under the Standards of Weights & Measures Act, 1976 and the Rules made thereunder viz., the Standards of Weights & Measures (Packaged Commodities), Rules, 1977; it is clear from the provisions of Section 4A(1) that the provisions of Section 4A(2) will be applicable only to those goods viz., (i) that are specified by the Central Government; and (ii) that such goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is provided that the value of such goods would be deemed to be the such retail price declared on the packages. Of course, the assessee shall be entitled to have a reduction of abatement as declared by the Central Government by the notification in the Official Gazette. Even at the cost of repetition, the following would be factors to include the goods in Section 4A(1) & (2) of the Act: i. The goods should be excisable goods; ii. They should be such as are sold in the package; iii. There should be requirement in the SWM Act or the Rules made thereunder or any other law to declare the price of such goods relating to their retail price on the package; iv. The Central Government must have specified such goods by notification in the O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... public, anywhere. Therefore, even though CSD sells the soaps to the Defence personnel, it is not a "retail sale" but it is a restricted welfare activity undertaken by CSD, which is confined to the Defence personnel alone. It is for this reason that even CBEC vide its Circular No.625/16/2002-CX dated 28.2.2002 has recognized the fact that MRP cannot be printed on the goods supplied to CSD. 8. Further, learned counsel submits that both the lower authorities have proceeded on the footing that Rule 34 of the Standards of Weights & Measures (Packaged Commodities) Rules does not apply to the sales made by the appellants to the CSD since they do not fall under the categories specified under the said Rule 34. 9. Learned counsel, submits that Circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment of India (Allocation of Business) Rules, 1961. The organization service officers and staff of the armed forces of the Union and the canteens are locations of storage and display from which the officers and staff procure articles that they require. Though it may have the looks of a shop, it is more of a store. Being an inhouse procurement agency, it would not admit to enforcement under the statute relating to legal metrology. Its avowed aim is to make goods available to its restricted clientele at prices below the maximum retail price - with that objective, it is not required to conform to the legal metrology statutes. 12. An institutional consumer, by implication of the definition of the said expression, is undoubtedly a point of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is the value determined under Section 4 of Central Excise Act, 1944 that will determine the basis for computation of duty liability. " [ emphasis supplied ] 11. The learned AR fairly admits that the issue is covered by the above decisions of the Tribunal. 12. Heard both sides and perused the records. 13. We find that the appellant during the hearing before the Commissioner (Appeals) has contended that; Rule 2A under Chapter II of the SW&M, Rules, 1977 makes it abundantly clear that in case of sale to a "institutional consumer/buyer, the above mentioned provisions of this chapter shall not apply and that institutional buyer is defined to mean those consumers who, buy packaged commodities directly from the manufacturer/packers for se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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