TMI Blog2007 (11) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... fication No.9 of 2000 dated 1.3.2000 under Section 4A (1) (2) of Central Excise Act (for short 'the Act') and specified the goods mentioned in Column 3 of the said notification. Entry No.48 pertains to the refrigerators whereby the Refrigerators invited valuation under Section 4A of the Central Excise Act with the abatement of 40%. Section 4A(1) (2) of the Central Excise Act require that any goods included in the notification shall be valued on the basis of the Maximum Retail Price (for short 'MRP') which is required to be printed on the packages of such goods. The five conditions for inclusion of the goods are: i) The goods should be excisable goods; ii) They should be such as are sold in the package; iii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ermed to be a 'packaged commodity' and further the provisions of The Standards of Weights and Measures Act, 1976 (for short 'SWM Act') or the Rules made thereunder are not applicable to the Refrigerator at all. It was, therefore, prayed that the notification was liable to be quashed only to the extent that it included the Refrigerator and the requirement of declaring MRP on the Refrigerator. 3. The Respondent Authorities, however, maintained that the Refrigerator was in fact sold in a package of polythene cover, thermocol, hardboard cartons etc., and thus it falls in the category of "pre-packed commodity". On that basis it was contended that since every packaged commodity was included in the SWM Act and the Rules made thereunder, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The use of the terms 'or otherwise' in the definition would suggest that a commodity if packed in any manner in units suitable for sale, whether wholesale or retail, becomes a 'commodity in packed form'. In the year 1977 The Standards of Weights and Measures (Packaged Commodities) Rules, 1977 (for short 'SWM (PC) Rules'). Rule 2(l) defines 'pre packed commodity' which is as under: "pre-packed commodity" with its grammatical variations and cognate expressions, means a commodity or article or articles which, without the purchaser being present, is placed in a package or whatever nature, so that the quantity of the product contained therein has a pre-determined value and such value cannot be altered without the package or its lid or cap, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mation including the sale price on the package. Thus it is clear that by being sold by the manufacturer in a packaged form, the Refrigerator would be covered by the provisions of SWM Act and SWM (PC) Rules and it would be imperative that the MRP has to be printed in terms of Rule 6 which has been referred to above. The High Court has also made a reference to Rule 2(l) and more particularly, the Explanation to which we have referred to earlier. In our view the reliance by the High Court on Rule 2(l) is correct. Learned counsel tried to urge that every customer would like to open the package before finalizing to purchase the Refrigerator. He would atleast get it tested and for that purpose the package would be destroyed. That may be so ..... X X X X Extracts X X X X X X X X Extracts X X X X
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