TMI Blog2014 (7) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... any other similar service industry and "Industrial Consumers" means those consumers who buy packaged commodities directly from manufacturers/packers for using the same in their industry for production etc. Since M/s. ELCOT are neither institutional consumer nor industrial consumer, in respect of sale of CTVs by the appellant to them, MRP was required to be declared in term of SWM Rules and accordingly, the Provisions of Section 4A would be applicable. The Appellant have paid duty on this basis only i.e. on the value determined under section 4A. - Impugned order not sustainable - Decided in favour of assessee. - Appeal No.E/55979/2013-EX(DB) - Final Order No. A/51670/2014-EX(DB) - Dated:- 12-3-2014 - Mr. G. Raghuram and Mr. Rakesh Kumar, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the CTVs were supplied to M/s. ELCOT minus abatement, by treating their per unit sales price to M/s. ELCOT as MRP. The Department was of the view that in respect of sales of CTVs to M/s. ELCOT, there was no requirement to declare MRP in terms of the provisions of the SWM Rules as in terms of Rule 2A(b) of these Rules, the provisions of Chapter II of these rules would not apply if the packaged commodities are meant for Industrial Consumers or Institutional Consumer as defined in Explanation, to this rule and M/s. ELCOT were an Institutional Consumer . In terms of 'Explanation' to Rule 2A(b) of the SWM Rules, Institutional Consumers mean those consumers who buy packaged commodities directly from manufacturers/packers for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 4A of the Central Excise Act., 1944 and accordingly in respect of CTVs cleared to M/s. ELCOT, if MRP was required to be declared in terms of the provisions of the SWM Rules on the CTV's packages, the duty was required to be paid on the assessable value determined under section 4A i.e. Maximum Retail Price (MRP) minus abatement, that in this regard, MRP (per unit price) of CTVs supplied to M/s. ELCOT had been declared on the packages of CTVs, that M/s. ELCOT are neither an Industrial Consumer nor an Institutional Consumer in terms of definitions of these terms as given in Rule 2A(b) of the SWM Rules, that, therefore, the duty has been correctly paid on the CTVs on the basis of the value to determined under section 4A, that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that M/s. ELCOT have to be treated as an institutional consumer as defined in the explanation to Rule 2A(b) of the SWM Rules. 6. We have considered the submissions from both the sides and perused the records. There is no dispute that the color television sets are notified under section 4A of the Central Excise Act, 1944 and accordingly in respect of the sales of CTV sets by a manufacturer, which are other than the sale referred in Rule 2A(b) of the SWM Rules, there would be requirement of declaring the MRP on the packages and assessable value of the goods in such cases would have to be determined under section 4A i.e. MRP minus abatement as notified under the Notification issued under section 4A. The appellant have paid duty on the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;service' referred in the definition of Institutional Consumer is the service industry like airlines, railways and other similar services and as such the activity of free distribution of CTVs among poorer section of the population of Tamil Nadu on behalf of the Govt. of Tamil Nadu, cannot be called service industry as it is not a commercial activity. Industrial Consumers also, as the CTVs purchased by them were not meant for use in their factories for production. Since M/s. ELCOT are neither institutional consumer nor industrial consumer, in respect of sale of CTVs by the appellant to them, MRP was required to be declared in term of SWM Rules and accordingly, the Provisions of Section 4A would be applicable. The Appellant have paid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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