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of <h1>Tribunal overturns order, favors appellant on Cooler Kit vs. electric fan valuation.</h1> The Tribunal set aside the impugned order, allowing the appeal in favor of the appellant, emphasizing the distinction between the Cooler Kit and an ... Valuation - MRP - Cooler kit consisting of fan and pump Issues:1. Interpretation of Notification No. 20/99 for valuation of goods.2. Classification of 'Cooler Kit' as an electric fan under the notification.3. Application of Section 4A of the Central Excise Act for valuation.4. Affixing of MRP on the Cooler Kit packaging.5. Distinction between Cooler Kit and electric fan for duty assessment.Analysis:1. The case involved the interpretation of Notification No. 20/99 issued under Section 4A of the Central Excise Act, 1944, for the valuation of goods by reducing abatement from the retail sale price. The notification specified abatement percentages for various items, including electric fans at 35%.2. The main issue was the classification of the 'Cooler Kit' supplied by the manufacturer to a buyer as an electric fan under the said notification. The manufacturer contended that the Cooler Kit, consisting of a fan and pump, should not be classified as an electric fan under the notification.3. The appellant argued that the Cooler Kit was a distinct item not covered by Notification No. 20/99 and should be valued based on its normal sale price under Section 4 of the Central Excise Act, not Section 4A. Evidence presented included purchase orders, sales brochures, and invoices showing the Cooler Kit's components and pricing.4. The Revenue authorities contended that the MRP affixed by the manufacturer on the Cooler Kit packaging should be considered the MRP of the fan alone, leading to duty assessment based on the MRP. However, the appellant highlighted the separate pricing for the fan and pump components in purchase orders and sales documents.5. The Tribunal concluded that the Cooler Kit, comprising a fan and pump, was a separate commercial item distinct from an electric fan. The MRP of Rs. 1695/- applied to the entire kit, not just the fan component. Therefore, the Cooler Kit could not be treated as an electric fan under the notification, and the duty demand and penalties imposed were deemed unsustainable.Conclusion:The Tribunal set aside the impugned order, allowing the appeal in favor of the appellant, emphasizing the distinction between the Cooler Kit and an electric fan for valuation and duty assessment purposes under Notification No. 20/99 and Section 4A of the Central Excise Act.
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