TMI Blog2017 (3) TMI 1138X X X X Extracts X X X X X X X X Extracts X X X X ..... has been issued to the appellant is factually on wrong facts. In the SCN, it is alleged that fuse base or fuse links are individually packed but on production of sample, we find that these are not individually packed at all but these are packed in bulk in a carton of 3, 6 or 10 fuse bases or 3, 10 or 15 pieces for the purpose of transportation. The goods are in wholesale packs as is evident from the samples placed on record and before us that the goods are not individually packed and the goods are to be sold by manufacturer to wholesaler in bulk enabling the wholesaler to sell /distribute or deliver such goods to the consumer in smaller quantity - As the goods cleared by the appellant to the wholesaler are in bulk, therefore we hold that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndard of Weight and Measurement (Packaged Commodities) Rules, 1976 and therefore, the individual packs should bear amongst other things, the MRP at which they can be sold as prescribed under Rule 6 of the said Rules. However, each piece was individually packed thereafter placed in multi piece pack on the ground of convenience for transportation and consequently, the provisions of section 4A and the said notification were not complied with. In these set of facts, the show cause notice was issued to the appellant to demand differential duty to be paid under section 4A of the Act. The appellant contested the show cause notice stating that product in question was manufactured and specially packed for industrial use as raw material and according ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mits that the appellant deliberately did not pack the goods individually and they were packed in such a fashion that they could be sold individually in retail contravening the provisions of Standard of Weights and Measures (Packaged Commodities) Rules, 1977. In that circumstances, the impugned order is to be upheld. He relies on the decision of Jayanti Food Processing (P) Ltd. vs. CCE, Rajasthan [2007 (215) ELT 713 (Tri-Bang)] 5. Heard the parties. 6. On careful consideration of submission of both the sides, the following issue emerges - whether the fuse base /fuse links manufactured and cleared by the appellant without individual packing in bulk in cardboard cartons are covered by section 4A of the Central Excise Act, 1944 rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in packings containing 1 to 10 pieces and on which as per the instruction of manufacturers labels mentioning the MRP and other particulars like manufacturer name, part no., etc., were being affixed and duty on the same has been paid on the value determined under Section 4A of the Act; and (c) To wholesale dealers of goods were being sold in boxes of 100 pieces each and on which duty was paid on transaction value of the Section 4 of the Central Excise Act, 1944. 3 . There is no dispute about the clearance made under categories (a) and (b) herein above. The only dispute with regard to the goods sold to the wholesale dealer in boxes of 100 pieces each on which duty was paid and transaction value as per Section 4 of the Act. Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Standards of Weights and Measures (Packaged Commodities) Rules, 1977. We also find that Rule 29 (ibid) specifies that on wholesale packages the declaration to be made by the assessee and as per the said Rule there is no requirement to declare retail sale price. Therefore, we hold that appellant are not required to declare retail sale price on wholesale packages. 14 . In these circumstances, we are of the view that on merits, the appellants are having a case that they are clearing their goods as wholesale packages to the distributors/intermediaries to sell the goods in question to the consumer in smaller quantities. 15 . With regard to the case laws, we find that the issue on valuation under Section 4A of the Central Excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the SWM (PC) Rules are not applicable to the facts of this case which is squarely covered by the guidelines issued by the Hon ble Apex Court in the case of Jayanti Food Processing (P) Ltd. (Supra). In these circumstances, we hold that appellant has correctly valued their goods sold to the wholesaler in wholesale packages and valued as per Section 4 of the Central Excise Act, 1944 i.e. transaction value. 8.. We find that in this case, as per Rule 2x of Standards of Weight and Measures (Packaged Commodities) Rules, 1977, there is difference between multi piece packs and wholesale packages. In this case, the goods are in wholesale packs as is evident from the samples placed on record and before us that the goods are not individually pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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