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Netway Home Products India P. Ltd. Versus Commr. of C. Ex., Bangalore-II

2016 (3) TMI 125 - CESTAT BANGALORE

Differential duty demand - valuation under Section 4 or Section 4A - appellant is engaged in the manufacture of cleaning liquids like floor cleaners, utensil cleaners, glass cleaners, etc. - Revenue felt that the appellant’s products attracted duty on MRP, in terms of Notification No. 49/2008 (N.T.), dated 24-12-2008 issued in terms of Section 4A of Central Excise Act - Held that:- There is no dispute about the fact that the Entry 3402, under which the appellant’s products fall, is one of the sp .....

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ations for use as soap in the form of bars, cakes, moulding pieces or shapes and organic surface active products”. In other words if the legislature intended to cover all the organic surface active products, which may be in a shape other than bars, cakes, moulded pieces or shapes, they would have referred to the organic surface active products, after describing the preparations for use as soap in the form of bars, cakes, moulding pieces or shapes. There is no warrant to hold that the expression .....

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ot called for. Accordingly, the impugned order of Commissioner (Appeals) is set aside and the order of the original authority is restored. - E/21300, 21284-21285/2014-DB - Final Order Nos. 21453-21455/2015 - Dated:- 29-6-2015 - Ms. Archana Wadhwa, Member (J) and Shri B.S.V. Murthy, Member (T) Shri Vinay S. Sejpal, Advocate, for the Appellant. Shri R. Gurunathan, Additional Commissioner (AR), for the Respondent. ORDER [Order per : Archana Wadhwa, Member (J)]. - Being aggrieved with the impugned o .....

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The said products are being cleared by them on payment of duty on the assessable value adopted in terms of the provisions of Section 4 of Central Excise Act. 3. However, the Revenue felt that the appellant s products attracted duty on MRP, in terms of Notification No. 49/2008 (N.T.), dated 24-12-2008 issued in terms of Section 4A of Central Excise Act. Accordingly proceedings were initiated against them for confirmation of differential duty. 4. During the course of adjudication, appell .....

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t inasmuch as the appellant s goods which fall under Tariff Heading 3402, are in liquid form, and inasmuch as Sl. No. 40 of the Notification in question refers to the goods cleared in the form of bars, cakes, moulding pieces or shapes, the said notification would not get attracted. Accordingly, he dropped the proceedings against the appellant. 5. Being aggrieved with the said order of Asst. Commissioner, Revenue filed appeals before the Commissioner (Appeals). The appellate authority vide h .....

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entral Excise Act. The said goods were admittedly classifiable under Headings 3402 20 10 and 3402 20 90. 7. The dispute in the present appeals relates to the legal issue as to whether the said goods would attract duty in terms of Section 4 or the same are required to discharge their duty liability in terms of Section 4A of the Central Excise Act, in terms of Sl. No. 40 of Notification No. 49/2008. For better appreciation, we reproduce the said Sl. No. 40 of the Notification in question. 40 .....

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question are a liquid form, they would not get covered by the said notification. On the other hand, the reasoning of the Commissioner (Appeals) is that the said Sl. No. 40 of the notification consists of two parts i.e. organic surface active products and preparations for use as soap. The criteria of the goods being in form of bars, cakes, moulding pieces or shapes is associated only with the preparation for use as soap and not with the organic surface active products. For the above observation, .....

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tion under chapter head 3402. The other category - Organic surface active products finds mention under both 3401 and 3402. However, there are no other products of chapter head 3402 which are mentioned in the said, notification. Hence, it can be inferred that the chapter head 3402, mentioned in the notification, refer to Organic surface active products only. The products manufactured by the Respondents fall under the said chapter head 3402. 1 find that the form of the products i.e., bars, cakes, .....

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f bars, cakes, moulding pieces or shapes is a self-contained description of a category of goods falling under 3401, and only a part/portion of it - for use as soap in the form of bars, cakes... cannot be applied tc, the category - Organic surface active products falling under the head 3402. The products under the two categories - (i) Organic surface active products and (ii) preparations for use as soap in the form of bars, cakes, moulding pieces or shapes are separate and distinct. Hence, I do n .....

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facts, we also reproduce the relevant entries below :- Tariff item Description of goods Unit Rate of duty (1) (2) (3) (4) 3401 Soap; organic surface-active products and preparations for use as soap, in the form of bars, cakes, moulded pieces or shapes, whether or not containing soap; organic surface-active products and preparations for washing the skin, in the form of liquid or cream and put up for retail sale, whether or not containing soap; paper, wadding, felt and nonwovens, impregnated, coa .....

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taining soap, other than those of heading 3401 - Organic surface-active agents, whether or not put up for retail sale : 3402 11 - Anionic : 9. After appreciating the submissions made by both the sides, we find that the issue involved in the present appeals is as to whether the appellant s products which are admittedly classifiable under Heading 3402 and are admittedly in liquid form, are required to discharge duty under Section 4 of the Central Excise Act or under Section 4A of the Act in t .....

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roducts which are in liquid form will not get covered by the said entry. On the other hand, the Revenue s contention is that the expression in the form of bars, cakes, moulding pieces or shapes is relatable to only to preparations for use as soaps and not to organic surface active products. 10. We find that it is only the said entry which requires interpretation and any reference to the classification heading, for interpreting the notification, is irrelevant. There is no dispute about the f .....

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