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2016 (4) TMI 13 - AT - Central ExciseValuation of Goods under Section 4 i.e Transaction Value or under Section 4A i.e MRP based value - Differential duty demand - revenue proposing to assess the goods under Section 4A as per the M.R.P - goods cleared to industrial consumers by the assessee as free supply - Held that:- As decided in Jayanti Food Processing (P) Ltd. Vs CCE Rajasthan [2007 (8) TMI 3 - Supreme Court ] what is material is the definition of “retail sale price”. The requirement of Rule 6(1)(f) is specific. It requires the retail sale price of the package be printed or displayed on the package. If there is no sale involved of the package, there would be no question of Rule 6(1)(f) being attracted. There is a clear indication in the definition of “retail sale price” as provided in Rule 2(r) which clearly explains that the MRP means the maximum price at which the commodity in packaged form “may be sold” to the ultimate consumer. Thus, the definition of “sale” in Section 2(v) of the SWM Act becomes relevant. Therefore, unless there is an element of sale, as contemplated in Section 2(v), Rule 6(1)(f) will not be attracted and thus such package would not be governed under the provisions of SWM (PC) Rules which would clearly take such package out of the restricted arena of Section 4A(1) of the Act and would put it in the broader arena of Section 4 of the Act The ratio of the above case law is squarely applicable to the present case as the goods are sold to the industrial consumers who in turn supplied these goods as free gifts and these are not ultimately sold in retail sale either by the consumer or by the person who purchases it or by the ultimate buyer. Thus we hold that the detergent powders cleared to the industrial consumers are exempted from M.R.P. and not covered under Section 4A. Accordingly, we hold that differential duty confirmed in the impugned orders are liable to be set aside - Decided in favour of assessee
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