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TMI Blog2004 (7) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... f Maximum Retail Price, net quantity. When these two proviso of Rule 34(b) are read together it is clear that the declaration in respect of Maximum Retail Price and the net quantity is not required to be made if the net content of the packages is less than 10 gms or 10 ml. Therefore, the Appellants' multi-piece packages having only 9 gms in the multi pack under consideration is clearly exempt from the requirement of declaration of MRP under Standards of Weights and Measures Act. In other words, it is not legally obligatory declare MRP of such packages. The ld. Advocate has brought on record that Commissioners (Adjudication) and two Commissioners (Appeals) have concurrently held that the Appellants multi-piece packing (of 3 sachets of 3 gms each) of powder hair dye is entitled to exemption under Rule 34(b) in the case of these very appellant for earlier periods. Departments appeal before this Tribunal, E/253/2003-Mumbai dated 10-5-2004, was dismissed. Therefore, we find no reason to arrive at a contrary decision. It is therefore held that the package herein is not liable for assessment to duty under Section 4A of the Central Excise Act, 1944. In view of the fact that duty has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ispensation provided for under Rule 34 is for 'package containing single unit of commodity' and not for packages containing several such units (package containing pre-packed commodities. (e) The appellants' contention is : Any packing containing a net quantity of less than 10 gms or 10 ml does not require to carry any declaration in respect of Maximum Retail Price under Rule 34(b) of the Standards of Weights and Measures (Packaged Commodities) Rules. Since the Appellants' packing contains only 9 gms of the commodity, there is no statutory obligation to declare the MRP. Section 4A of the Act is attracted only when the goods are required to bear the MRP statutorily under the Standards of Weights and Measures Act or under any other law for the time being in force. As the packing contains a net quantity of only 9 gms and such packing is not required to carry MRP statutorily under the Standards of Weights and Measures Act, the Appellants' products cannot be assessed under Section 4A, but is required to be assessed under Section 4 of the Act. A copy of the relevant provisions of the SOW M(PC) Rules. 3. The reading of Circular No. 341/64/97-TRU, dated 11th August 1997, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... individual pieces of less than 10 grams or 10 ml or less, even though the net quantity of such multi-piece package exceeds 10 grams or 10 ml would be covered by the above exemption. Hence they would not required to be assessed to excise duty on the MRP prices under Section 4A of Central Excise Act, 1944. The matter has been examined in consultation with the Law Ministry. The Law Ministry has given the opinion that the exemption under Rule 34(b) is applicable to a package containing a commodity and this exemption does not appear to be applicable to multi-piece packages. Based on the above opinion of the Law Ministry, it is clarified that the declaration of retail sale price of multi-piece packages and individual pieces contained in such multi-piece package (if such individual pieces are capable of being sold separately) is statutorily required under Rule 17(1) of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977. In view of the above statutory requirement for declaration of retail sale price under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 for multi-piece packages, it is clarified that in respect of multi-piece packages of a commo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . There is another Circular No. 639/30/2002-CX, dated 24-5-2002 which clarifies that when more than one retail price is declared on package, then the highest of two prices will be taken for the purpose of assessment under Section 4A (Circular No. 673/64/2002-CX, dated 28th October, 2002) seeks to bring uniformity in valuation of multi-piece packages under different circumstances. Further, it also modifies the earlier Circular dated 24-5-2002 to this extent, that if one of the two prices declared on the package is scored out then such scored out MRP should be ignored. From the circulars issued time to time it is apparent that the view has consistent been that if a manufacturer is not legally required to be declare the MRP on a package, then the provisions of Section 4A of the Central Excise Act will not be applicable for …… Of assessment of duty on such packages. Rule 34(b) of the Rules under Standards of Weights and Measures Act is very clear and unambiguous. The sub-rule (b) thereof, provides that the provisions of the Packaged Commodities Rules will not be applicable where the net weight or measure of the commodity contained therein, is 20 gm or 20 ml or less. The second proviso ..... X X X X Extracts X X X X X X X X Extracts X X X X
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