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2023 (3) TMI 1419 - AT - Central ExciseValuation of goods - actual MRP declared on the package is less than 2.5 times the FOB value - declaration of more than one MRP. SCN relied on Explanation 2(a) to Section 4A of the Central Excise Act, 1944, where more than one MRP is declared, the maximum of such MRPS shall be deemed to be the MRP for the purposes payment of duty and duty is to be discharged on the maximum of such MRP. HELD THAT:- The appellants are industrial consumers. Therefore, even if the appellants declare MRP at the time of importation, MRP declared thereon should be ignored for the purpose of Standards of Weights and Measures Act, 1976 and rules made thereunder. Therefore, the MRP declared at the time of importation cannot be considered as MRP of the goods imported. Hence, in law, the appellants have declared MRP only once i.e., when the goods were cleared from the Panvel warehouse - The scheme of the Section 4A provides for determination of the value on the basis of the declared MRP/ RSP at the time of clearance. It do not provide for re-determination of the MRP/ RSP by the revenue authorities at the time of clearance. The same can be done only in the manner and subject to the conditions as per Section 4A (4). The provision of Section 4A (4) do not get attracted, even if the case of revenue is that the imported goods were cleared on payment of duty on the basis of Adhoc value, which was higher than the declared MRP. The Adhoc value based on the thumb rule of 2.5 times the FOB value cannot be the declared MRP but a determined value for the specific purpose of the clearance of the goods by the customs authority at the port of importation. Further the goods cleared from the custom port have suffered manufacturing process as per the section 2 f of the Central Excise Act, 1944 and are not the same goods as cleared from the port. There are no merits in the impugned order - appeal allowed.
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