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TMI Blog2016 (1) TMI 969X X X X Extracts X X X X X X X X Extracts X X X X ..... manufactured by the appellant are notified for assessment under Section 4 A of the Central Excise Act, 1944 in addition to sales of the goods to the dealers for ultimate sale to the consumers through retail network, the appellant also sell the ceramic tiles directly at the factory gate to various other customers like contractors, schools, colleges, hospitals, hotels, builders, etc. The appellant discharged their duty liability on all the clearances under Section 4 A of the Central Excise Act, 1944. The Department is of the view that the clearances made by the appellant to customers like contractors schools, colleges, hospitals, hotels, builders, etc. are sales to the institutional buyers. Hence, these goods are assessable under Section 4 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strial Consumer is exempt to affix MRP as per Rule 2 A of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977. Therefore, the appellants are required to pay duty on transaction value i.e. as per Section 4 of Central Excise Act, 1944. Accordingly, impugned proceedings were initiated against the appellant and duty demand along with interest and penalty have been confirmed against them by way of the impugned order which is in challenge before us." 5. In those set of facts, this Tribunal arrived at the following observations:- "5. We have carefully considered the submissions made by both the sides. We have also perused the sample purchase orders placed by some of the institutitional buyers. From these documents, it is se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;meant for industrial consumer or meant for institutional consumer' are excluded from the provisions of Packaged Commodity Rules and such packages should have a further marking that they are 'not meant for retail sale". From these clarifications which have been issued by the authorities implementing the Legal Metrology (Packaged Commodity) Rules, 2011, it is absolutely clear that the supplies made by the appellant to the various institutional buyers are not excluded from the declaration of MRP under the Packaged Commodity Rules. We cannot disregard these clarifications given by the competent authorities in the matter. 5.1 We further observe that the Hon'ble Apex Court in the case of Jayanti Food Processing (P) Ltd. Vs. Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Apex Court. In ITEL Industries Pvt. Ltd. Vs. CCE - 2004 (163) ELT 219 case, telephones were supplied in bulk for exclusive use of the Department of Telecom; this Tribunal held that duty liability discharged under Section 4 A is correct as there was no exemption from packaging indicating special use by any industry. 5.3 In view of the above, we are of the considered view that, in the present case also, the same ratio would apply. Accordingly, we hold that the discharge of duty liability tiles supplied in retail packages to real estate developers /developers, etc. has to be made under Section 4 A of the Central Excise Act, 1944. Therefore, the impugned demands are not sustainable in law and accordingly, we set aside the same." 6. As th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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