2008 (1) TMI 59 - AT - Central Excise

Tribunal rules wholesale lubricating oil pack exempt from duty under Section 4A

The Tribunal held that the 210-liter wholesale pack of lubricating oil, not requiring an MRP declaration under the Weight & Measures Act, should not ... On unit pack of 210 ltrs of lubricating oil, duty is paid by the appellant as per Section 4 on the ground that 210 ltrs. barrel of lubricating oil is not a retail pack but a wholesale pack and there is no requirement to affix any MRP on the same – as per Standards of Weighs & Measures Act it is not mandatory to declare the MRP on 210 ltr. Barrel pack - not open to the Excise authority to doubt the decision of the authority under SWM Act – Sec. 4A not applicable for valuation Issues:Valuation under Section 4A for lubricating oil retail packs vs. wholesale packs of 210 ltrs - Duty payment based on MRP requirement under Standards of Weight & Measures Act.Analysis:The appellant, engaged in manufacturing lubricating oil, was paying duty as per Section 4A for retail packs based on MRP affixed. However, a dispute arose regarding the 210 ltr wholesale pack, for which duty was paid under Section 4 due to the absence of MRP. The adjudicating authority held the 210 ltr barrel as not a wholesale package under the Standards of Weight & Measures Act, requiring duty payment under Section 4A.The Tribunal examined Section 4A, which mandates duty payment for goods requiring MRP declaration under the Weight & Measures Act. As the 210 ltr pack lacked an affixed MRP and was considered a wholesale pack for industrial use, the appellant argued against the duty under Section 4A. The Legal Metrology Department clarified that the 210 ltr pack falls under the wholesale package definition, not necessitating MRP declaration. However, the Commissioner disregarded this clarification, leading to the Tribunal's intervention.The Tribunal emphasized that the decision on MRP requirement lies with the Weight & Measures Act authorities. Since the Metrology department confirmed no MRP obligation for the 210 ltr pack, the Tribunal deemed Section 4A inapplicable. It criticized the Excise authority's independent decision contrary to the Metrology department's clarification. Consequently, the impugned order was set aside, and the appeal was allowed in favor of the appellant.