MRP-based valuation dispute: arguable exemption claim did not justify complete pre-deposit waiver, and partial deposit was ordered.

Telephone sets cleared to the Department of Telecommunication were treated by the lower authorities as assessable on the maximum retail price basis under section 4A of the Central Excise Act, 1944. The appellant argued that the goods were specially packed for servicing an industry and fell within the exemption framework under section 34 of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977, so MRP marking was not required. The Tribunal found the case arguable and requiring detailed examination of the evidence, but held that this did not justify complete waiver of pre-deposit at the interim stage. Total waiver was declined; deposit of Rs. 50 lakhs was directed, the existing bank guarantee was to remain alive, and waiver of the balance duty was granted subject to compliance.

---

---

Issues: Whether the appellant was entitled to total waiver of pre-deposit of duty in a dispute concerning valuation under section 4A, and whether the refusal of exemption under the standards and weights regime affected the appellant's plea against MRP-based assessment.

Analysis: The Tribunal noted that the lower authorities had treated telephone sets cleared to the Department of Telecommunication as assessable on the maximum retail price basis under section 4A of the Central Excise Act, 1944. The appellant relied on the exemption framework under section 34 of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977, contending that the goods were specially packed for servicing an industry and therefore did not require MRP marking. The Revenue pointed out that exemption had been sought and declined by the competent authority. The Tribunal observed that the appellant's case was arguable and required detailed examination of the evidence, but at the interim stage it did not justify complete waiver of pre-deposit.

Conclusion: Total waiver was declined. The appellant was directed to deposit Rs. 50 lakhs and keep the existing bank guarantee alive, and waiver of the balance duty was granted subject to compliance.

---