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TMI Blog2024 (4) TMI 1267X X X X Extracts X X X X X X X X Extracts X X X X ..... sed by the Assistant Commissioner and rejected the appeals filed by the appellant. 2. The appellant manufactures parts of motor vehicles and supplies them to M/s. Maruti Suzuki Ltd. The parts manufactured by the appellant are chargeable to central excise duty under section 4A of the Central Excise Act, 1944 Act except where they are supplied to industrial consumers or institutional consumers. 3. The appellant supplied some parts to Maruti but packed in individual packets with maximum retail sale price printed on them. According to the department, such goods should be assessed to duty under Section 4A but the appellant assessed and paid duty under section 4. 4. Two Show Cause Notices SCN dated 3.1.2017 and 16.2.2018 were issued to the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule reads as follows: "Rule 3. The provisions of this chapter shall not apply to- (b) packaged commodities meant for industrial consumers or institutional consumers". Explanation:- For the purpose of this rule,- 'Industrial consumers means the industrial consumers who buy packaged commodidites directly from the manufacturer for use by that industry." (v) Since Maruti Suzuki is an industrial consumer, the provisions of Legal Metrology Rules do not apply and there is no mandate to indicate the MRP on the individual packets. Therefore, Section 4A of the Central Excise Act will not apply and duty has to be paid under section 4 only; and (vi) Therefore, the demands cannot be sustained and need to be set aside. The impugned order may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture of automobiles or could be sold as spares by the automobile manufacturer. The amended definition clearly distinguishes between the two and if the goods are marked 'not for retail sale' and sold to the manufacturers, they qualify as sale to 'industrial consumers' and not otherwise.
11. Since the appellant cleared the goods in individual packets with MRP stickers even though they were sold to Maruti Suzuki, they did not qualify as sales to 'industrial consumers'. Therefore, Section 4A was correctly applied by the Assistant Commissioner in the OIO and the Commissioner (Appeals) in the impugned order.
12. The impugned order is upheld and both appeals are dismissed.
[Pronounced in the open Court on 25.04.2024] X X X X Extracts X X X X X X X X Extracts X X X X
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