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2016 (2) TMI 62 - AT - Central ExciseValuation - MRP based value or transaction value - whether 50 Ltrs package of Lubricating oil should be valued as per Section 4 or 4A? - Held that:- The fact emerges is that the goods in question are not sold to industry and are is not used as raw material by any industry, it is admitted position that 50 Ltrs. Package is sold to the truck owners who consumed themselves. In such situation, it cannot be said that 50 Ltrs package is covered under the exemption provided under Rule 34 of Standards of Weight and Measures; therefore we are of the considered view that since the nature of the sale i.e. 50 Ltrs package is made to the ultimate customers, MRP is statutorily required to be affixed and the goods will be valued in terms of Section 4A. Goods i.e. Lubricating oil 50 Ltrs package should be valued in terms of Section 4A and not under Section 4 of the Central Excise Act, 1944. Therefore demands of differential duty confirmed by the lower authorities are upheld. As regards the penalty, we find that all the show cause notices were issued within the normal period of one year, no suppression of mis-statement exists in the present case. Moreover, issue involved in the present case is purely of interpretation of valuation provisions. In view of this undisputed fact we are of the view that penalty of equal amount is not warranted in the facts and circumstances of the case. We therefore reduce the penalty from ₹ 9,28,432/- to ₹ 2,00,000/- While confirming the demand, penalty reduced - Decided partly in favor of assessee.
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