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2023 (11) TMI 367 - CESTAT MUMBAIValuation of Excise Duty - adoption of maximum of the different ‘retail selling price (RSP)’ for chargeability to duty under Central Excise Act, 1944 - HELD THAT:- The entire proceedings has been premised on a clear lack of appreciation of objectives of Standards of Weights and Measures Act, 1976, or its successor Legal Metrology Act, 2009, and its relationship with Central Excise Act, 1944. Mandating the affixing of ‘retail selling price (RSP)’, on goods specified under these statutes was intended to protect customers from being overcharged at the retail stage on pain of penalties and detriments prescribed. Neither that law nor Central Excise Act, 1944 affords a mandate to customs officials, at the time of clearance of import, or central excise officials, at the time of clearance from factory, to determine the price at which the goods are sold - exclusively a decision of the manufacturer/importer. The goods imported by the appellant are ‘repacked’ after clearance from customs control and such activity being manufacture erases the ‘import’ that had taken place earlier to be superimposed with production of excisable goods in the hands of the manufacturer and subject to valuation under section 4A of Central Excise Act, 1944 for assessment to duties of central excise. The affixing of ‘retail selling price (RSP)’ thereupon becomes the first, and final, declaration of price for assessment under Central Excise Act, 1944. There are, thus, no two prices and, therefore, the Explanation 2(a) below section 4A of Central Excise Act, 1944 would not come into play. In the case of the appellant for the earlier period, the issue has been decided by the Tribunal in their favour. Nothing remains in the demand confirmed in the impugned order which is set aside along with charging of interest and imposition of penalty to allow the appeal. Appeal allowed.
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