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2019 (12) TMI 786 - CESTAT ALLAHABADMethod of Valuation - section 4 or section 4A of Central Excise Act - Set Top Boxes for television sets under the brand name of TATA SKY - whether the duty of Central Excise discharged on MRP of ₹ 1499/- could be accepted for discharge of duty under section 4A of the Excise Act? HELD THAT:- In exercise of the powers conferred by sub-section (1) and (2) of section 4A of the Excise Act, the Central Government issued a Notification dated 1 March, 2006 which was subsequently amended by Notification dated 24 January, 2008 by which Set Top Boxes for television sets were included as at Serial. No. 89B. It is not in dispute that the Respondent was paying Central Excise duty on the various models of Boxes manufactured and cleared on the basis of MRP printed on the boxes in terms of section 4A of the Excise Act after availing abatement as applicable from time to time with effect from 25 January, 2008. Prior to this date, the Respondent was paying Central Excise duty of the boxes on the transaction value under section 4 of the Excise Act - The Commissioner found that the Department could not substantiate that the goods in question were sold to ultimate consumers at a price that was higher than the printed MRP. While arriving at this finding, the Commissioner observed that none of the three grounds contemplated under section 4A of the Excise Act on account of which the Department could ascertain the retail price existed. In fact the Commissioner also examined two invoices which clearly indicated that the boxes were sold at ₹ 1,499/- by M/s TATA SKY Ltd. No evidence was produced by the Department to establish that the Boxes were sold to ultimate customers at a price higher than the MRP. When the conditions set out in sub-section (4) of section 4A of the Act for ascertaining the retail sale price of the goods were not satisfied, the Department cannot be permitted to ascertain the sale price of the goods. The MRP indicated in the Boxes would alone form the basis for determining the levy of Central Excise duty. Appeal dismissed - decided against appellant.
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