TMI Blog2003 (11) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... ackaged Commodities) Rules, 1977. 2.Petitioner firm is engaged in the manufacture of herbal hair dye which falls under Chapter sub-heading 3305.99 of Central Excise Tariff Act, 1985. Under Notification No. 20/99-C.E. (N.T.), dated 28-2-1999, herbal hair dye manufactured by the petitioner are packed in sachets of 8 gms in weight in Photo Protective Pouch and six such pouches were being packed in a Mono Carton. Since the net weight of the individual pouch did not exceed 10 gms, the petitioner was assessed on the basis of wholesale price under Section 4(1)(a) of the Central Excise Act, 1944. The Central Government introduced Section 4A of the Act with effect from 14-5-1997 as per Section 82 of the Finance Act, 1997, which contains a special ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f a commodity intended for retail sale and which are notified under Section 4A, they shall be assessed to excise duty under the provisions of Section 4A of Central Excise Act, 1944." 6.It is appropriate at this stage to notice the relevant statutory provisions. 7.Section 4A of the Central Excise Act is to the following effect :- "Valuation of excisable goods with reference toSECTION 4A. 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 Standards of Weights and Measures Act, 1976 (60 of 1976) or the rules made thereunder or under any other law for the time being in force, to declare on the package thereof the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government to make rules to carry out the provisions of the Act. Section 83(2) empowers the Central Government, without prejudice to the generality of the rule making power under Section 83(1), to make rules to provide for the manner of declaration of the contents of a package and specification of the unit of weight, measure or number in accordance with which the retail sale price shall be declared on the package. In accordance with the rule making power, the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 have been framed. Rule 2(p) is to the following effect :- "retail package" means a package containing any commodity which is produced, distributed, displayed, delivered or stored for sale through retail sales agenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld by weight or measure;" 11.The first and foremost contention of the petitioner is to the effect that since Rules have been framed under the Standards of Weights and Measures Act relating to packaged commodities, the Central Board of Excise and Customs lacks jurisdiction to issue any circular or notification in respect of matters covered under the Act or the Rules made thereunder. 12.Even though such a contention may appear to be attractive on the face of it, on deeper scrutiny, such contention is not acceptable. The purport of the present circular is not to lay down any guideline or rule relating to any matter covered under the Act or the Rules made thereunder. The purport of the impugned circular is to issue clarification in the matt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n a declaration of number of individual pieces contained and the retail sale price of the multi piece package. The proviso makes it clear that where individual pieces contained in multi package or packaged are labelled separately and are capable of being sold separately, each piece shall bear declaration as to quantity and the retail sale price. 15.A perusal of these provisions makes it clear that articles kept in separate pouches by the petitioner can be termed as multi piece package and such pouches can be sold individually in single piece or together in a mono-carton of six pouches. The contention of the petitioner that exemption under Rule 34 would be applicable is not acceptable. Even though the net weight is less than 10 grams, it i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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