TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the base paints cleared in pre-packed containers were liable to assessment under Section 4A of the Central Excise Act, 1944 or under Section 4 of that Act, having regard to the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 and the subsequent tinting at dealers' premises.
Analysis: The base paints were cleared in sealed containers with MRP declarations and were covered by the statutory notifications governing goods assessable on the basis of retail sale price. The opening of the containers at dealers' premises for addition of colourants and tinting did not alter the character of the goods as pre-packed commodities at the time of clearance from the factory. For the applicability of Section 4A, what matters is whether the goods are excisable goods sold in package and whether the law requires declaration of retail sale price on the package; post-clearance modification at the buyer's or dealer's instance does not exclude the goods from the scheme of Section 4A. The departmental attempt to value the goods under Section 4 on the basis of dealer-level tinting was inconsistent with the statutory basis of valuation and with the manner in which the goods were cleared from the factory.
Conclusion: The goods were correctly valued under Section 4A and not under Section 4; the demand, interest, and penalty could not be sustained.
Ratio Decidendi: For goods cleared in pre-packed form with declared MRP, subsequent opening or tinting at the dealer's premises does not displace Section 4A valuation when the statutory conditions for retail-price-based assessment are otherwise satisfied.
TaxTMI 
