Tariff unit of quantity for statistical purposes only: non-declaration in kilograms did not justify penalty on glassware clearances.

Glassware cleared in pieces and sets was not required to report the unit of quantity in kilograms in ER-1 returns where the tariff's standard unit was intended only as a statistical and facilitative measure. The Board's circular clarified that the prescribed unit was indicative, not mandatory, so insisting on kilogram-based declaration for home clearances was unjustified on the facts. As the non-declaration in that unit did not itself establish any contravention, penalty under Rule 25 was not sustainable and the assessee was relieved from the proposed penalty.

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Issues: Whether the assessee was bound to show the unit of quantity in kilograms in ER-1 returns for glassware classifiable under Chapter 70 of the Central Excise Tariff Act, 1985, and whether penalty proceedings under Rule 25 of the Central Excise Rules, 2002 were sustainable.

Analysis: The products were sold in the market in pieces and sets, and the tariff's standard unit of quantity was referred to as a facilitative measure for collection, comparison and analysis of trade statistics. The Board's circular clarified that the standard units of quantity prescribed in the tariff were only indicative and had not been made mandatory. In that view, the insistence on declaring quantity only in kilograms for home clearances was not justified on the facts.

Conclusion: The requirement to declare the unit of quantity in kilograms in the manner directed was not mandatory, and the assessee was not liable to the proposed penalty. The appeal was dismissed in favour of the assessee.

Ratio Decidendi: Where the tariff prescribes a standard unit of quantity only for statistical purposes and the departmental circular clarifies that such specification is not mandatory, non-declaration in that unit does not by itself justify penalty.

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