Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (7) TMI 768 - AT - Central ExciseMRP based duty - undervaluation - clearance from unit-I to unit-II - branded chewing tobacco - pouches, weighing 5 gms each - whether the multi-piece packs from the factory are intended for retail sale as claimed by the appellant and whether such goods intended for retail sale are required to be printed with Maximum Retail Price under the Standards of Weights & Measures (Packaged Commodities) Rules, 1977. Held that:- Tax arbitrage is a reality that cannot be wished away or suppressed by executive action. It is a legitimate strategy that is bound to be adopted, if, as in the present instance, a minor tweaking of marketing practice will gain that financial advantage. It is the favourable valuation outcome that weighs with the assessee in complying with the prescription of the Standards of Weights and Measures (Packaged Commodity) Rules, 1977 and which cannot be resisted if otherwise compliant. Enforcement is the responsibility of officials of both Legal Metrology and the Central Excise at the retail sale point. As long as consumer interest is served, higher revenue from the alternative valuation cannot be a determinant of proper valuation. It is thus, unambiguously clear that the manner of retail packing - whether as a pouch of less than 10 gm/ 10 ml or as multi-piece packet is a marketing decision of the manufacturer. Being an ascertainable fact, the Tribunal has constantly held that affixing the retail selling price on the multi-piece packet is a clear indication of intent for retail sale. As long as such multi-piece packs are cleared from the factory with retail selling price, its compliance with Standards of Weights and Measures (Packaged Commodity) Rules, 1977 is not arguable. The lower authorities erred in brushing aside the clarification given by an official of Legal Metrology department without confirming the veracity of its contents at appropriate levels in that department. Matter remand back to the original authority to ascertain from the relevant invoices if the goods have, indeed, been cleared as multi-piece packs with retail selling price affixed on them and to limit demand of differential duty only to the extent that the clearances not made in multi-piece packs or in multi-piece packs that do not bear the retail selling price. - Decided partly in favor of assessee.
|