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2017 (10) TMI 335 - AT - Central ExciseShort payment of duty - Revenue proposed the demand of duty on the ground that since the sets were cleared for evaluation/display purpose the Central Excise duty ought to have been discharged at specific rate of duty as per the N/N. 5/99 dated 28.2.1999, No.3/2001 dated 1.3.2001 and No.6/2002 dated 1.3.2002. Held that: - the subject goods are not the standard products of the appellant but are modified / improved versions with additional facilities. These goods were stock transferred by the appellant to the branches initially for the purpose of evaluation/display as marketing strategy before commencement of their bulk commercial production. Though it is true that retail price was declared for the subject goods, the appellant admits that the goods were initially cleared for evaluation/display to the depots/branches of the appellant and finally sold to their employees at less than the retail price declared. When the subject goods are not factually meant for sale in the market in the normal course, the appellant s pleading that they have declared retail sale price, which has been the sole consideration for sale to the ultimate consumer, cannot make them entitled to the benefit of Notification No.6/2002 dated 1.3.2002 for clearance of their goods at the rate of duty at 16% under its Col. No.(i). Penalty - Held that: - considering that the subject matter is an issue of interpretation of the wordings of the Notification, the penalty imposed on the appellant is hereby dropped. Appeal allowed in part.
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