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2017 (3) TMI 555 - AT - Central ExciseValuation - SSI unit - clearances exceeding exemption limit - whether the paints supplied by the respondent would require mandatory affixation of MRP or whether they are exempted from such requirement and in consequence, whether their assessment for levy of excise duty will be governed by Section 4A or Section 4 ibid? - Held that: - it clearly emerges that the packages cleared by the respondent were stenciled with the markings BHEL USE ONLY and BHEL APPROVED. In this regard, it is observed that Rule 34 of the said Rules provides exemptions from affixture of MRP on packages which have been specifically packed not only for exclusive use of any industry as a raw material but also a commodity for the purpose of servicing any industry etc. - The said paints are utilized exclusively by BHEL or their ancillary units for use on their final products (boilers etc.) as anti-erosion treatment for use on their original equipment manufactured by them. This being the case, the impugned goods are exempt from affixation of M.R.P in view of the special provisions of Rule 34 of the Standard Weights and Measures (PC) Rules,1977, especially since all conditionalities of the said Rule are satisfied. Rule 34 ibid being a special provision, will then override the other general provisions of the said Rules - When the statute has prescribed any special provisions excluding the application of other general provision therein, that special provision will prevail over the general provision - the valuation of the impugned goods would then not be under Section 4A of the Central Excise Act but under Section 4 only. In view of the discussions, and also keeping in mind that there was some genuine confusion concerning MRP assessment under Section 4A of the Act in the initial stages after its introduction, there shall be no penalty on the respondent-assessee. Appeal allowed - decided in favor of appellant.
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