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2008 (2) TMI 645 - HC - Central ExciseMRP based valuation under central excise - Section 4A - industrial supply or not - use for shopping malls, large residential complexes, commercial buildings etc. - “Pre-packed commodity” - petitioners submitted that the switchgear products manufactured by the petitioners are not a “commodity in the packaged form” within the meaning of Act and the Rules. Packaging is done only for the sake of convenience and for safe transportation and protection during storage and handling. The nature of the switchgear products manufactured by the petitioners is that they are not required to be packed before they can be sold and goods are not pre-packed commodity as they do not have pre-determined value at the time when they are placed in the package - in the case of Whirlpool India Ltd. (2007 -TMI - 2207 - Supreme Court of India), held that a refrigerator which is a single unit which is packed in polythene cover, thermocol etc. and placed in hard board cartons is a pre-packed commodity under the old rule considering the language of the rule as substituted, there can be no escape from holding that the goods seized from the stockists of the petitioners are a pre-packed commodity. contention of the petitioners rejected Industrial or institutional consumer - If the packaged commodity purchased cannot be directly installed by the Co-operative Housing Society on the ground that such user is prohibited by the Electricity Rules, that however, would only mean that a person qualified under the rules can install the same for the consumer who may have purchased the package - no prohibition on such society purchasing the product and installing it through a licensed person. They are the ultimate consumers - All such consumers whether they be institutional or industrial will also be covered by Chapter II. Even the ordinary dictionary meaning makes such a purchaser a ‘consumer’ - construing Rule 3, who are excluded are only the institutional or industrial consumers as explained in Rule 2A and that the industrial or institutional consumers in terms of the proviso to Rule 2(p) for the purpose of Chapter II are the same
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