2016 (12) TMI 1716 - AT - Central Excise

Tribunal grants duty exemption for cement export without MRP, citing precedents

Ultratech Cement Ltd. Versus C.C.E. And Cus., Raipur

The Tribunal allowed the appellant's appeal, granting them the benefit under Notification No.4/2006-CE for exporting cement in 50 kg bags without ... Benefit of Concessional rate of duty - N/N. 4/2006-CE dated 1.3.2006 as amended - appellant has exported cement in 50 kgs. bag - denial of concession on the ground that no MRP was mentioned nor any parameter mentioned in the Standards of Weights & Measures (Packaged Commodity) Rules, 1977 was fulfilled - Held that: - The Tribunal in the case of Jaypee Bela & Rewa Plant vs. C.C.E., Bhopal [2016 (12) TMI 531 - CESTAT NEW DELHI] has observed that where retail sale price was not required to be cleared other than package form would be entitled to the benefit of the N/N. 4/2006-CE - appeallant are allowed the benefit of notification - appeal allowed - decided in favor of appellant. Issues:Interpretation of Notification No.4/2006-CE for partial exemption under Central Excise Tariff Act, 1985 for cement exports in 50 kg bags without MRP or fulfilling Standards of Weights & Measures Rules.Analysis:The appeal was filed against Order-in-Original No.62/2010 by the Commissioner of Central Excise, Chhattisgarh, regarding the clarification of Notification No.4/2006-CE for partial exemption under heading 2523 29 of Central Excise Tariff Act, 1985. The dispute arose from the appellant's export of cement in 50 kg bags without mentioning MRP or fulfilling Standards of Weights & Measures Rules. The concessional rate of duty was denied, leading to the appeal before the Tribunal.Upon hearing both parties and examining the record, the Tribunal noted a similar issue in the case of Prism Cement Ltd. vs. C.C.E., Bhopal, where the claim of the appellant was allowed for exporting cement in 50 kg bags to Nepal under Notification No.4/2006-CE. The Revenue argued that as the goods were exported and consumers were abroad, the Standards of Weights & Measures Rules did not apply, thus denying the exemption. However, the Tribunal, in the case of Jaypee Bela & Rewa Plant vs. C.C.E., Bhopal, held that products not requiring a retail sale price other than in packaged form would be entitled to the benefit of the Notification No.4/2006-CE.Based on the settled legal proposition from previous cases, the Tribunal set aside the impugned order and allowed the appellant to claim the benefit under Notification No.4/2006-CE. Consequently, the appeal filed by the appellant was allowed, granting them consequential relief.