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2017 (3) TMI 1129 - AT - Central ExciseMethod of Valuation - transaction value u/s 4 or MRP based value u/s 4A - toothpastes in tubes branded as ‘Calcium Prudent’ - destined for distribution by the Canteen Stores Department (CSD) - institutional consumer or not - it was contended that goods not required to adhere to Standards of Weights & Measures (Packaged Commodity Rules), 1977, have the ‘retail selling price’ affixed on the packing - Held that: - The Canteen Stores Department (CSD) is wing of the Ministry of Defence. It is a presidential artifice which is assigned to that Ministry in The Government of India (Allocation of Business) Rules, 1961. The organization service officers and staff of the armed forces of the Union and the canteens are locations of storage and display from which the officers and staff procure articles that they require. Though it may have the looks of a shop, it is more of a store. Being an in-house procurement agency, it would not admit to enforcement under the statute relating to legal metrology. A ‘maximum retail price’ is affixed on the impugned package does not, of itself, render the goods liable to comply with the provisions of the law relating to ‘maximum retail price’ - whether that of legal metrology or of levy of excise duty. It is the requirement of compliance with the Standard of Weights & Measures (Packaged Commodity) Rules, 1977 that does. With the exclusion of institutional buyer from the ambit of the Rules, the affixing of retail sale price is not mandated on the impugned goods when cleared - The intent of the appellant is thus, unambiguously, clear, i.e., it is not for retail sale. Consequently, it is the value determined under section 4 of CEA, 1944 that will determine the basis for computation of duty liability - appeal allowed - decided in favor of appellant.
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