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2023 (3) TMI 534 - CESTAT AHMEDABADValuation of export goods - method of valuation - Section 4A or Section 4 of Central Excise Act, 1944? - toothbrushes supplied in bulk in the carton to the principal manufacturer for further supply as under promotional scheme/ offer to supply the same free of cost with their toothpaste - HELD THAT:- There is no dispute on the fact of the present case that appellant are manufacturing tooth brush and supplying to their principal manufacturer M/s. Hindusan Unilever Ltd. & Prime Healthcare Products. In some of cases the tooth brush is packed in retail pack and MRP, is affixed on it. On such goods, the appellant is discharging duty under section 4A on MRP based valuation, on which there is no dispute. The other type of supply is the tooth brush are packed in bulk quantity in loose form in a carton and supply to their principle manufacturer. The principle manufacturer use this brush for their promotional scheme and the same is packed in a combo pack of tooth paste and this tooth brush. In this case, the tooth brush is not meant for retail sale but it is for supply under promotional scheme. The appellant is also clearing the said goods in bulk form in a carton. Therefore, as per standards of weights and measure Rules, the appellant are not under legal obligation to affix the retail sale price on this supplies. Therefore, the valuation of tooth brush when supplied in bulk quantity in carton was rightly valued under Section 4 of the Central Excise Act, 1944. This very issue has been considered by this Tribunal in the case of M/S CONTEMPORARY TARGETT PVT LTD VERSUS C.C.E. & S.T. -VADODARA-I [2019 (5) TMI 871 - CESTAT AHMEDABAD] where it was held that the tooth brushes supplied by the appellant which is not for retail sale but for free supply by the tooth paste manufacturer will not be valued under Section 4A in the hands of the appellant - the value adopted by the appellant under Section 4 is correct and legal which does not need any interference. The impugned order is not sustainable. Accordingly, the same is set aside - Appeal allowed.
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