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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 is legally obliged to print MRP on the packages of the goods under the provisions of Standard of Weights and Measures (Packages Commodities) Rules, 1977. Further; Section 4A (1) ibid makes it very clear that it will apply only to such goods in relation to which it is required, under the provisions of Standard of Weight and Measures (Packaged Commodities) Rules, 1977, or the Rules made thereunder or under any law for time being in force. 3. The app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale lost its relevancy in the sense that the valuation did not depend upon the factor whether it was a wholesale or sale in bulk or a retail sale. The whole section covered the goods which were packaged and sold as such with the rider that such package had to have a retail price thereupon under the provisions of SWM Act, Rules made thereunder or under any other law. Thus, viewed from the plain language of the Section, where the goods are excisable goods and are packaged and further such packages are required to mention the price thereof under the SWM Act, Rules made thereunder or under any other law and further such goods are specified by the Central Government by notification in the Official Gazette, then the valuation of such goods would be on the basis of the retail sale price of such goods and only to such goods the provisions of subsection (2) shall apply whereby it 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 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 Circular dated 28.02.2002 has settled the issue in favour of the appellants and the said Circular is binding on the Department. The appellate authority has grossly erred in law in holding that Circular No.626/16/2002- CX dated 28.02.2002 merely lays down a general principle and does not confirm that the sales to CSD are not required to be affixed with a retail price in terms of the provisions of the Standards of Weights Measures Act, 1976. 10. During the hearing the learned counsel submitted that the issue is no longer res integra as the Tribunal has already decided the issue in their favour, he further submits that the present issue is a periodical one and similar demands were raised on the appellant and the Tribunal vide Final Order No. 20076- 20077/2018 dated 07.02.2018 (Wipro Ltd. Vs. CCE, Bangalore as reported in 2018 (3) TMI 981 CESTAT BANGALORE, held that Central Excise Duty has to be discharged under Section 4 of the Central Excise Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ations Ltd. who has successfully bid for supply of the impugned goods to the Canteen Stores Department (CSD) and at a price that is determined by the bidding process without there being any evidence that such price is the same as the affixed maximum retail price. The intent of the appellant is thus, unambiguously, clear, i.e., it is not for retail sale. Consequently, it 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 service industry like transportation (including airways, railways), hotel or any other simi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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