TMI Blog2007 (6) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... f Customs, Chennai. In the impugned order, the Commissioner demanded differential additional duty of customs amounting to Rs. 3,75,45,395/- on button cells imported by M/s. Titan Industries Ltd (TIL) under 62 Bills of Entry during the period 1-3-2001 to 31-12-2002. The Commissioner also demanded interest under Section 28AB of the Customs Act (the Act) and imposed a penalty on TIL equal to the duty demanded, under Section 114A under the Act. 2. The facts of the case are that the appellants, manufacturer of Titan brand watches, had imported button cells declaring them as for own use. The appellants had cleared the goods on payment of all duties based on the transaction value. The button cells are specified under Section 4(A)(1) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Measures (Packaged Commodities) Rules, 1977. Accordingly, he concluded that the impugned imports attracted assessment of CVD based on retail sale price as provided under Section 3(2) of the Customs Tariff Act, 1975 and demanded differential CVD short paid at the time of their clearance. 3. The impugned order has been assailed in the appeal mainly on the following grounds. Button cells were not imported in pre-packaged form. The Hon ble Andhra Pradesh High Court in its judgment reported in AIR 2003 AP 175 had decided that to attract the provisions of SWMA and Rules made there under it was essential that the commodity was notified for the purpose under Section 1(3)(d) SWMA. No such notification was issued as regards button cells. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 4A of the Central Excise Act, it was essential that the provisions of the SWMA, or the Rules made thereunder, or any other law for the time being in force, required to declare the retail sale price on the packages of the goods. The impugned goods were imported packed in thermo foamed trays, each tray holding 100 button cells with 10 such trays shrink wrapped and stacked in a carton. Each shipment consisted of 1,50,000 button cells so packed. Therefore, the imports were in bulk packages and did not attract MRP based assessment. 6. The ld. SDR reiterated the findings of the Commissioner in the impugned order. 7. We have carefully considered the case records and the rival submissions. The short question to be decided in the instant cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... odity means a commodity, which, without the purchaser being present, is placed in a package so that the quantity of goods contained therein, has a pre-determined value and such value cannot be altered without opening the package. Further, in terms of the said Rules, the term package is to be construed as package containing such pre-packed commodity. Therefore, only when such pre-packed commodities are sold in retail packages, the provisions of Standards of Weights Measures Act and Rules regarding declaration of the retail sale price (and consequently valuation of the goods based on such RSP) arises. 7.3 The Counsel for the appellants showed us the examination report by the officer of customs on the Bill of Entry relating to one ..... X X X X Extracts X X X X X X X X Extracts X X X X
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