Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2022 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (5) TMI 200 - AT - Central ExciseMethod of Valuation - Air Circuit Breakers - MCCB - Switch Fuse unit - classifiable under Chapter Heading 8536 2010, 8536 2020 and 8536 5090 meant for industrial consumers and weighing more than 25 kgs. are to be valued according to the transaction value under Section 4 of the Central Excise Act, 1944 or the MRP Value under Section 4A of the Central Excise Act, 1944? - Extended period of limitation - HELD THAT:- In the instant case, it is found that it is not disputed by the either parties that the goods are excisable; sold in the package, the goods are specified vide Notification No.14/2008-CE (NT) dated 1.3.2008 as amended and N/N. 49/2008-CE (NT) dated 24.12.2008 to fall under Section 4A. However, the dispute appears to be regarding the definition of ‘Industrial Consumer’. Whereas the definition of ‘Industrial Consumer’ at the relevant point of time meant industrial consumers who buy packaged commodities directly from the manufacturer for use by that industry. The dealer is not a individual consumer and the goods are routed through them to the industrial consumers. The department had no objection in case of very same goods cleared directly to the industrial consumers. Thus, there is an ambiguity in the treatment of the impugned goods by the department. It is the very same goods that are sold directly to the industrial consumers and also through channel partners. It is found that such a treatment by the department defies logic as the nature of the goods is not changed just by the way they are sold. The characteristics, the usage and the users are not changed. Invocation of longer period - HELD THAT:- The appellant’s contentions are acceptable and the department has not made out any case for invocation of extended period. The impugned goods, in packages having weight more than 25 kg are not chargeable to duty under Section 4A, only for the reason that they are sold through channel partners; differential duty demanded on this count is set aside - All other demands, if any, within normal period are confirmed - Penalty is set aside.
|