2009 (3) TMI 162

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..... he basis of MRP of Rs. 750/- printed on the box of Hand Blender or otherwise. 2. The facts in brief are that, the appellants had cleared 12664 Nos. of JMG with the gift of Hand Blender valued at Rs. 56,98,800/-, during the period from March 1998 to 6-4-1999. After issue of show cause notice adjudication and appellate process, demand of duty of Rs. 10,18,863/- with interest was confirmed, penalty of Rs. 10,18,863/- was also imposed on the firm and penalty of Rs. 2 Lakhs was imposed on Shri P.A. Ramani, Chairman & Managing Director and penalty of Rs. One lakh on Shri P.C. Shah, authorized signatory. 3. Ld. Advocate Shri H.D. Dave, arguing on behalf of the appellants submitted that the issue is no more res integra and is covered by the decis .....

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..... sidered the price for sale not withstanding free gifts offered to buyers. He also cited several other decisions of the Tribunal in support of his contention that hand blender supplied free along with the JMG by the appellants need not be assessed separately for the purpose of charging the Central Excise duty. 4. As regards the cost, he submits that even though MRP was printed on the hand blender, it was printed only for the purpose of showing to the buyers that they were getting a product worth Rs. 750/- free when they buy JMG and intention was never to sell the hand blender separately. He also showed the package to us. The hand blender package in addition to the MRP also had clear indication that it is being provided free with JMG. The pa .....

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..... ing product but whether there was a requirement under the SWM Act or the Rules there under to print the MRP on the wrapper. The fact that MRP has been printed on the package of the hand blender shows that it was required as per the SWM Act and once MRP is printed, the duty is to be discharged. Further, He also submitted that the package containing the hand blender is capable of being sold separately, since MRP has been printed on the same. It is his contention that the package containing hand blender and JMG can be considered as multi piece package and in view of the above fact that both can be sold separately, duty has to be charged on both separately. He also relied upon the decision of the Tribunal in the G.S. Enterprises case [2002 (144 .....

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