Section 4A differential duty demand on MRP-cleared goods lacked prima facie support, securing stay of recovery.

Amended Section 4A of the Central Excise Act was found, on a prima facie basis, insufficient to sustain a differential duty demand on washing machines cleared under the MRP regime, because the departmental case depended on showing alteration of the declared retail price on the product label. The Tribunal treated that requirement as unmet at the interim stage and therefore granted protection against recovery, with waiver of pre-deposit and stay of recovery for the duty and penalty amounts. No final determination of the demand was made.

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Issues: Whether the demand for differential duty on washing machines cleared under the MRP regime could be sustained on the basis of amendments to Section 4A of the Central Excise Act, 1944, and whether pre-deposit and recovery should be stayed.

Analysis: The order recorded a prima facie view that the amended provisions of Section 4A did not support the demand on the facts then before the Tribunal. It noted that sustaining such a demand would require showing alteration of the declared retail price on the label of the goods, and it treated the departmental reliance on the amendments as insufficient at the interim stage. On that basis, the Tribunal granted interim protection against recovery.

Outcome: Waiver of pre-deposit and stay of recovery were granted for the duty and penalty amounts. No final adjudication of the demand was made.

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