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2015 (11) TMI 365 - CESTAT NEW DELHI

2015 (11) TMI 365 - CESTAT NEW DELHI - TMI - MRP based valuation u/s 4A - affixing of sticker showing revised MRP over the printed MRP - Held that:- The bulk of the duty demand ₹ 11,91,164/- is on the basis of the allegation that while on the cartons of the LPG stoves cleared by the appellant from MRP was printed, the appellant had put MRP stickers on the MRP originally printed on the containers, which is much lower than the MRP originally printed on the containers and discharged duty liab .....

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tainable. The Tribunal in this order also held that affixing of sticker showing revised MRP over the printed MRP on the packages is in accordance with Rule 6 of the Standards of Weight and Measures (Package) Rule, 1977 and it fulfils the requirement of the declaration in terms of Section 4A of Central Excise Act, 1944. Same view has been taken by the Tribunal in the case of Sukumar Soft Drinks vs. CCE, Bangalore (2006 (6) TMI 383 - CESTAT, BANGALORE). - Impugned order confirming duty demand is n .....

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a, Advocate For the Respondent : Shri M.S. Negi, Authorized Representative (DR) ORDER Per. Rakesh Kumar :- The facts leading to filing of this appeal are, in brief, as under. 1.1 The appellant are manufacturers of LPG stoves as well as bio-gas stoves. The bio-gas stoves are fully exempt from duty. The period of dispute in the present case is 09/06/08 to 31/08/2000. The appellant while manufacturing the stoves in their factory, got the packing material with the description of the product etc. pri .....

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is that during the period of dispute from 09/06/98 to 31/08/2000, while some MRP was printed on the packages, the appellant put a second MRP by putting a sticker on the MRP cleared earlier and the MRP on the sticker is much less than the MRP printed on the cartage and the appellant were not allowed to do this and were required to pay the duty only on the basis of the assessable value determined on the basis of the higher of the two MRPs, i.e. the MRP originally printed and the MRP mentioned on .....

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04/- is on this basis. (3) The third allegation against the appellant is that in course of search of their factory, the officers found a blank invoice book of M/s Ankur Enterprises and on inquiry, M/s Ankur Enterprises was found to be non-existent firm. However, from the impressions made on the duplicate copy of invoices, the officers were availed to ascertain the names of the dealers and the quantity of the stoves which had been cleared to them. On this basis, it has been alleged that stoves ha .....

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; 11,91,164/- on the appellant under Section 11AC. This order of the Joint Commissioner was upheld by the Commissioner (Appeals) vide order-in-appeal dated 09/5/06. Against this order of the Commissioner (Appeals), this appeal has been filed. 2. Heard both the sides. 3. Shri S.K. Pahwa, Advocate, Advocate, the learned Counsel for the appellant, pleaded that so far as duty demand of ₹ 11,91,164/- against the appellant is concerned, this demand is based only on the allegation that the carton .....

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ckage, that it is not the Departments case that on the cartons of the stoves, two MRP had been simultaneously declared, that the appellant had put the MRP on the stoves were being sold in retail, as they did not intend to sell the stoves at the MRP which was originally printed on the cartons, that the Department cannot allege that they had declared two MRP on the cartons and did not determine assessable value on the basis of the higher MRP, that the Tribunal in the case of Hindustan Appliances .....

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377; 11,91,164/- under the provision of Section 4A of the Central Excise Act, 1944 on the basis of higher of the two MRP is not sustainable, that same view has been taken by the Tribunal in the case of Sukumar Soft Drinks vs. CCE, Bangalore reported in 2006 (206) E.L.T. 1021 (Tri. Bang.), that the ratio of these judgments of the Tribunal is squarely applicable to the facts of this case, more so, when it is not the case of the Department that the stoves had sold by the appellants dealers on the .....

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ey deal only in LPG stoves, that on the basis of their statements only, the Department had alleged that the stoves received by them are actually the LPG stoves and not bio-gas stoves as shown in the invoices, that three out of the four dealers have placed orders for bio-gas stoves only, that when three dealers, G.A. Associate, Bangalore, M/s Shiv Shakti Enterprises, Gujarat and M/s Govind Agencies, Calcutta have placed written orders with the appellant for supply of bio-gas stoves, which are on .....

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s request for cross-examination was not accepted and, hence, the duty demand based only on the statements of these dealers is not sustainable, that as regards the duty demand of ₹ 28,531/- based on the basis of clandestine removal is concerned, this demand is based on the blank invoice book of M/s Ankur Enterprises, that the Departmental officers, on the basis of the impressions on the duplicate copies, have ascertained the name of the dealers and the quantity of the stoves which may have .....

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rned DR, defended the impugned order by reiterating the findings of the Commissioner. 5. We have considered the submissions from both the sides and perused the records. 6. The bulk of the duty demand ₹ 11,91,164/- is on the basis of the allegation that while on the cartons of the LPG stoves cleared by the appellant from MRP was printed, the appellant had put MRP stickers on the MRP originally printed on the containers, which is much lower than the MRP originally printed on the containers a .....

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package commodity were having some MRP printed on them and the assessee having decided to sell the goods at a lower MRP, had put stickers on the MRP originally printed showing the lower MRP. The Tribunal in this case held that MRP indicated on the sticker being put on the MRP printed on the cartons when the same were manufactured is not a declaration of two MRP one originally printed on the cartons and the other shown on the sticker and hence the duty demand in terms of Explanation II to Section .....

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that the ratio of these judgments of the Tribunal is squarely applicable in the facts of this case. Therefore, the impugned order confirming duty demand of ₹ 11,91,164/- is not sustainable and the same has to be set aside. 7. As regards the duty demand of ₹ 1,59,304/- on the basis of allegation that the appellant have cleared LPG stoves in the guise of bio-gas stoves without payment of duty to four dealers namely Shri Jibu J. Edattakaran, Kerala, G.A. Associate, Bangalore, M/s Shiv .....

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