TMI Blog2005 (10) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... ter, the shampoo along with the free gel is bound together and the label is fixed on the product. We agree with the contention of the appellant that this process amounts to manufacture as per Chapter Note 5 to Chapter 33. Further, it is seen that both the products are covered under Section 4A and Standards of Weights and Measures Act. The ratio of OSWAL FATS OILS VERSUS COMMISSIONER OF CENTRAL EXCISE, CHANDIGARH [ 2003 (1) TMI 180 - CEGAT, NEW DELHI] is squarely applicable, in that case bindis were packed along with soaps for free supply to buyers of soap. It was held that the additional package of bindis had no connection to the price of soap, the price of bindis is not includable in the assessable value of soap. In the SURYA FOOD AND AGRO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ducts adopting valuation as per section 4A of the CE Act of 1944. In other words, they discharge their duty liability on the basis of maximum retail price minus abatements allowed in the notification. The Revenue proceeded against the appellants on the following grounds. (i) The process of binding together with face wash gel and dandruff shampoo is not manufacture. (ii) The benefit of the CBEC Circle No. 673/64/2002-C.X., dated 28-10-2002 is not applicable. 3. Therefore, the original authority concluded that the appellants should discharge their duty liability on the gel in terms of Section 4 of CE Act 1944. He demanded a sum of Rs. 28,39,151/-. The appellants approached the Commissioner (A) who upheld the order-in-original, therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... STAT in the case of Surya Foods Ltd. v. CCE reported in 2003 (156) E.L.T. 488, if dissimilar products are sold together, the same is covered under provision of CBEC Circular No. 673/64/2002. (iv) The appellant has sold the product together and classified the product under 3305. As per Rule 3C of Interpretation Rule, "for any other reason, goods are, prima facie, classifiable under two or more headings, goods shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. In the present case, face wash gel is classified under 3304 and shampoo is classified under 3305, being the product is sold as shampoo, the product is rightly classified as shampoo and the appellant has paid the appr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e carefully. The appellants receive the gel and the shampoo in bulk and repack them in retail packages. Thereafter, the shampoo along with the free gel is bound together and the label is fixed on the product. We agree with the contention of the appellant that this process amounts to manufacture as per Chapter Note 5 to Chapter 33. Further, it is seen that both the products are covered under Section 4A and Standards of Weights and Measures Act. The ratio of Oswal Fats and Oils Limited (supra) is squarely applicable, in that case bindis were packed along with soaps for free supply to buyers of soap. It was held that the additional package of bindis had no connection to the price of soap, the price of bindis is not includable in the assessable ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
