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2018 (8) TMI 316 - AT - Central ExciseMethod of Valuation - Toffees - goods not intended for retail sale - Section 4 or 4A of CEA - Department took the view that the subject goods were not intended to be sold in retail, were not required to be affixed with M.R.P. as they are exempted under Rule 34(b) of the Standard of Weights and Measures (Packaged Commodity) Rules, 1977 (SWM (PC) Rules); that the jars/pouches are admittedly a wholesale pack, hence, these goods merited valuation in terms of Section 4 of the Act only - Extended period of Limitation. Held that:- The issue of whether the plastic jars/pouches containing individual toffees, which weigh around 2-2.5 gms, which are required to be assessed to Central Excise Duty under Section 4/4A of the Act, has been mired in litigation for quite some time. In fact, there were contradicting judgments by the Tribunal - The law has finally been settled only by the judgment of the Hon’ble Apex Court in Central Arecanut & Cocoa Marketing & Processing Co-Op. Ltd. [2008 (9) TMI 506 - SUPREME COURT] - Hence, certainly, before this date, the ratio laid down by the Hon’ble Apex Court in Continental Foundation Joint Venture case [2007 (8) TMI 11 - SUPREME COURT OF INDIA] will apply on all fours to the facts of this appeal, where it was held that Demand raised by the department has been quashed on the ground of adjudication beyond the normal period of limitation and non-availability of the extended period of limitation. The proceedings initiated by way of the Show Cause Notice 06/2007 dt. 26.03.2007 for the period 01.03.2002 to 31.03.2006 will be hit by limitation beyond the normal period of limitation. Hence, only the periods covered by the other SCNs dated 24.04.2007, 14.03.2008, 21.08.2008 and 30.04.2009 within the normal period alone will survive. Penalties - Held that:- Discernibly the entire dispute is one of interpretation of manner of assessment, whether under 4 or 4A of the Act and as mentioned earlier, there was considerable confusion in the matter till it was settled by the Hon’ble Apex Court - the penalties imposed are unwarranted and we set aside the same. Appeal allowed in part.
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