TMI Blog2023 (8) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... ition of institutional consumer has also undergone change. Instead of the words service industry the words used in the new definition of institutional consumer is service institution . The department has not doubted that the import is for sale to the RGKUT. This being so, the sale is not to an ultimate consumer and is only to institutional consumer. The view taken by the Commissioner (Appeals) that the assessment has to be made under normal transaction value under Section 4 is indeed legal and proper. There are no grounds to interfere with the impugned order. The impugned order is sustained - appeal dismissed. - HON BLE MS. SULEKHA BEEVI C.S., MEMBER (JUDICIAL) HON BLE MR. VASA SESHAGIRI RAO, MEMBER (TECHNICAL) For the Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ime of import. The original authority rejected the request for re-assessment and held that the assessment and CV duty paid in terms of section 4A of Excise Act 1944 is legal and proper. Against this, the appellant filed appeal before the Commissioner (Appeals) who vide order impugned in this appeal, set aside the order passed by the original authority and held that the goods are to be assessed under transaction value and that appellant would thereafter be eligible for refund. Aggrieved by such order the department is now before the Tribunal. 2. The Ld. AR, Shri Rudra Pratap Singh appeared and argued for the department. It is submitted that in the present case, the MRP/RSP was affixed on each package. Thus the goods are sold in a pre-pack ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e considered as a service industry . Education is neither a service nor is the institution an industry . That therefore the exclusion of chapter 2 of the Packaged Commodities Rules 1977 will not apply in the present case. The Ld. AR prayed that the appeal may be allowed. 3. The Ld. counsel Shri Rohan Muralidharan appeared and argued for the appellant. It is submitted by the Ld. counsel that on the basis of the documentary evidence, it is established that the goods are imported for supply to educational institution and not for retail sale. The respondent had inadvertently assessed the B/E on MRP value and availed SAD exemption. On realizing the error, they voluntarily paid back the SAD and also requested for reassessment on the basis of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e made by institutional consumers and not by an end consumer, and that the assessment has to be on the basis of transaction value under Section 4 and not under 4 A. 3.2 The Ld. counsel submitted that the SWM Act was replaced with the Legal Metrology Act, 2009 (LMA) and SWMPC Rules were replaced by Legal Metrology (Packaged Commodities) Rules 2011 (LMPC Rules). As per Rule 3 of LMPC Rules, the provisions of Chapter II pertaining to declaration of MRP would not apply in the case of sale made to institutional consumer. The definition of institutional consumer covers all the service institutions including transportation, airways, railways, hotels, hospitals etc. who buy packaged commodity directly from the manufacturer for use by the ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made in 2012, the new Legal Metrology Act and Packaged Commodities Rules 2011 would apply. The relevant provision of LMPC Rules read as under: CHAPTER II Provisions applicable to packages intended for retail sale Applicability of the Chapter The provisions of this Chapter shall not apply to:- a) Packages of commodities containing quantity of more than 25kg or 25 litres excluding cement and fertilizer sold in bags up to 50 kg ; and b) Packaged commodities meant for industrial consumers or institutional consumers. Explanation: For the purpose of this rule:- (i) institutional consumer means the institutional consumer like Transportation, Airways, Railways, Hotels, Hospitals or any other service institut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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