9911796707
TMI Blog2003 (9) TMI 245X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 4 of the Central Excise Act to goods specified under Section 4A. In these circumstances, we are of the view that telecom instruments in question fell for valuation under Section 4A. They were so valued and duty paid at the time of their removal from the factory. That they were sold in wholesale to a big customer like DOT/MTNL/BSNL against contract prices is altogether irrelevant for the purpose of their excise valuation. It is also no requirement under Packaged Commodities Rules or u/s 4A of the Central Excise Act that goods covered by those provisions should actually be sold in retail. This is made clear by the definition of retail sale under Rule 2 of Packaged Commodities Rules. The definition makes it clear that retail sale includes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 4A of the Central Excise Act. The Order-in-Original dated 7-3-2003 states the disputes as under : "In the case of assessee's supply to the DOT/BSNL though MRP has been declared on the individual cartons, the same is not the actual maximum retail price but only the contract price and the items are not meant for sale in the open market. The telephone sets are supplied to DOT/BSNL on contract price which is much lesser than the normal retail price of such telephone sets sold in the open market. As the sales are effected on a mutually agreed price, to a middle man (DOT/BSNL) as the ultimate customer being the individual subscriber of telephone, such sales do not come under the provisions of MRP, but under Sec. 4 of the Act an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the abatement specified is 40%. It is therefore, the appellant's contention that telephone instruments satisfying the requirements under Packaged Commodities Rules i.e. affixing with retail sale price, should be valued in terms of Section 4A and not at the wholesale price as provided in Section 4. During the hearing of the case, learned Counsel for the appellant pointed out that once the goods fell for valuation in terms of Section 4A, actual sale price is wholly irrelevant for the purpose of central excise valuation. Learned Counsel also pointed out that the only exception to this are clearances under Rule 34 of the Packaged Commodities Rules i.e. clearances of specifically packed goods for exclusive use in any industry as a raw ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jor requirement under this Rule is that maximum retail price should be affixed on the goods in question. There is no dispute that the telecom instruments involved in the present dispute were cleared in terms of Packaged Commodities Rules. It is also specifically noted that "MRP has been declared on the individual cartons". Telecom instruments are specified goods under Section 4A of the Central Excise Act also. Section 4A specifically excludes the application of provision of Section 4 of the Central Excise Act to goods specified under Section 4A. In these circumstances, we are of the view that telecom instruments in question fell for valuation under Section 4A. They were so valued and duty paid at the time of their removal from the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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