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2019 (3) TMI 1093 - AT - Central ExciseConcessional rate of duty - Clearance of watches on specific order given by some industrial organizations to be given for free distribution to the employees of such industrial organizations - contract price less than ₹ 500/- per watch or not - Section 4A of the Central Excise Act, 1944 - N/N. 10/2003-CE dated 01.03.2003 - Held that:- Section 4A deals with ‘Valuation of excisable goods with reference to retail sale price’. Sub-Rule (1) of Section 4A provides that the Central Government may, by Notification in the Official Gazette, specify any goods in relation to which it is required under the provisions of the Legal Metrology Act, 2009 (Standards of Weights and Measures Act, 1976) or the rules made thereunder or under any other law for the time being in force to declare on the package thereof the retail sale price of such goods to which the provisions of Sub-Section (2) shall apply. Thus, Section 4A has a reference to the Standards of Weights and Measures Act, 1976. However, the Notification does not have any reference to the Standards of Weights and Measures Act, 1976. In the case of goods which are assessable under Section 4A, when the goods are cleared to industrial consumers, as per the provisions of the Standards of Weights and Measures Act, there is no requirement to affix the M.R.P. In such cases, the goods would be assessable under Section 4 of the Central Excise Act, 1944 - In the present case, the Notification does not refer to the Standards of Weights and Measures Act, 1976. Thus, even if the goods are cleared to industrial consumers or otherwise, if they are sold to the ultimate consumer at a price which is not exceeding ₹ 500/- per piece, the clocks or watches would be eligible for the benefit of the Notification. The name of the industry/organization was engraved on the watches and the assessee has put forward a specific plea that these were sold to the industrial organizations for being distributed to their employees as complimentary gifts. The Department has not put forward any evidence to show that there has been a further sale by the industry/ organization to another person. Therefore, in the present case, the ultimate consumer is the industry/organization to which the assessee has sold the watches. This being so, the retail sale price being less than ₹ 500/-, the assessee are eligible for the benefit of the Notification. Appeal dismissed - decided against Revenue.
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