TMI Blog2023 (6) TMI 551X X X X Extracts X X X X X X X X Extracts X X X X ..... f Act, 1985 mentioned in the corresponding entry in column (2) of the said Table, as the goods to which the provisions of sub-section (2) of said section 4A shall apply, and allows as abatement the percentage of retail sale price mentioned in the corresponding entry in column (4) of the said Table. The item that is imported is classifiable under CTH 3506 1000, which covers Products suitable for use as glues or adhesives, put up for retail sale as glues or adhesives, not exceeding a net weight of 1kg - MRP based valuation is adopted for the purpose of collection of Excise Duty or CVD in respect of imported goods on goods specified under Section 4A of the Central Excise Act, 1944, in relation to goods which are subject to the provisions of the Legal Metrology Act (erstwhile Standards of Weights and Measures Act), where declaring the retail sale price on the package is mandatory. The provisions of the Legal Metrology Act/Standards of Weights and Measures Act or the rules made thereunder are applicable to all the goods, unless exempted, which are put up for retail sale in units / containers / packages. There is no doubt that the items under dispute in the instant appeal are adh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to CVD based on the retail sale price. 2. Facts in brief in this appeal are that the appellant had imported various items such as Rust Penetrant, Chain Lubricant, Mega Check Cleaner, Adhesive, Mega Check Penetrant, Paint Remover, vide Bill-of-Entry No. 607473 dated 25.08.2010, out of which the first four items were assessed to CVD on the basis of retail sale price and the balance two items were assessed on the basis of transaction value. With regard to the fourth item, namely, adhesive (Power Bond A1), which was classified under CTH 3506 1000, the assessment of CVD was done on the basis of retail sale price and not on the transaction value. 3. It appears that subsequently, the appellant ascertained that they were not liable to pay CVD based on retail sale price for the said product falling under CTH 3506 1000. As such, they preferred an appeal before the lower appellate authority, who vide his impugned Order-in-Appeal No. 298/2013 dated 28.02.2013 rejected the appeal of the appellant. Aggrieved by the above Order-in-Appeal, the appellant preferred the above captioned appeal before this forum. 4. It was submitted by the appellant that levy of CVD on import of goods is made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 7.3 It is further submitted that the description of the goods covered under clause (b) above are specifically covered under Tariff Item No. 3506 1000. The appellant has declared the classification of the imported adhesive under the said CTH 3506 1000. The lower appellate authority has clearly recorded in paragraph 5 of the impugned order that on merits, there was no dispute regarding the classification or description of the impugned goods, but the dispute is regarding the calculation adopted for the purpose of charging CVD i.e., whether under Section 4 or Section 4A of the Central Excise Act read with Section 3 of the Customs Tariff Act, 1975. 7.4.1 Shri M. Karthikeyan, learned Counsel appearing for the appellant, has advanced the argument that for the purpose of levying CVD on the basis of retail sale price declared on the package, the fundamental requirement is that the goods should be notified under Section 4A(1) of the Central Excise Act; the Notification No. 49/2008-C.E.(N.T.) issued under Section 4A(1) only notifies goods with the description Prepared glues and other prepared adhesives, not elsewhere specified or included , covered under clause (a) above and falling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot exceeding a net weight of 1 kg. 9. We have heard both the sides and have also perused the heading 3506 of the First Schedule to the Central Excise Tariff Act, 1985, which reads as under: - 3506 PREPARED GLUES AND OTHER PREPARED ADHESIVES, NOT ELSEWHERE SPECIFIED OR INCLUDED; PRODUCTS SUITABLE FOR USE AS GLUES OR ADHESIVES, PUT UP FOR RETAIL SALE AS GLUES OR ADHESIVES, NOT EXCEEDING A NET WEIGHT OF 1KG. 3506 10 00 - Products suitable for use as glues or adhesives, put up for retail sale as glues or adhesives, not exceeding a net weight of 1kg. kg. 16% - Other : 3506 91 -- Adhesives based on polymers of headings 3901 to 3913 or on rubber: 3506 91 10 --- Based on latex, phenol formaldehyde (PF), urea formaldehyde (UF) and polyvinyl alcohol (PVA) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chapter, heading, sub-heading or tariff item Description of goods Abatement as a percentage of retail sale price (1) (2) (3) (4) 1. 17 or 21 Preparations of other sugars 35 2. 1702 Sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel 35 ... 43. 3506 Prepared glues and other prepared adhesives, not elsewhere specified or included 35 .... 107. 9617 Vacuum flasks 35 108. Any heading Parts, components and assemblies of automobiles 30 Explanation. - For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (4) of the said Table. 13.2 The item that is imported is classifiable under CTH 3506 1000, which covers Products suitable for use as glues or adhesives, put up for retail sale as glues or adhesives, not exceeding a net weight of 1kg. . 13.3 Sub-Sections (1) and (2) of Section 4A of the Central Excise Act, 1944 read as under: - SECTION 4A. Valuation of excisable goods with reference to retail sale price. (1) The Central Government may, by notification in the Official Gazette, specify any goods, in relation to which it is required, under the provisions of the [Legal Metrology Act, 2009 (1 of 2010)] Standards of Weights and Measures Act, 1976 or the rules made thereunder or under any other law for the time being in force, to declare on the package thereof the retail sale price of such goods, to which the provisions of sub-section (2) shall apply. (2) Where the goods specified under sub-section (1) are excisable goods and are chargeable to duty of excise with reference to value, then, notwithstanding anything contained in section 4, such value shall be deemed to be the retail sale price declared on such goods less such amount of abatement, if any, from such reta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et weight of 1kg. To our mind, as the imported goods are classified under CTH 3506 1000, which is not disputed and which covers products put up for retail sale whose net weight does not exceed 1 kg., should be treated as included for the purpose of the impugned Notification No. 49/2008-C.E.(N.T.) dated 24.12.2008 for subjecting the goods to retail sale price based levy. 16. Taking a stand that the prepared glues and other prepared adhesives, not elsewhere specified or included, are included in the said Notification, as given therein, and would not include the same products put up for retail sale whose net weight is not exceeding 1 kg., is not legally correct. 17. In view of the above, we do not find any reason to differ with the decision of the lower appellate authority on the issue of including the imported adhesives for the purpose of collection of CVD on the basis of retail sale price in terms of Notification No. 49/2008-C.E.(N.T.) dated 24.12.2008 issued under Section 4A of the Central Excise Act, 1944. 18. As such, we hold that the order passed by the lower appellate authority does not call for any interference and the appeal stands dismissed. ( Order pronounced in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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