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of <h1>Tribunal rules in favor of appellant on sugar confectionery valuation, cites Central Excise Act</h1> <h3>Swan Sweets Pvt Ltd Versus C.C.E. & S.T. -Rajkot</h3> Swan Sweets Pvt Ltd Versus C.C.E. & S.T. -Rajkot - TMI Issues involved:The issue in this case revolves around the valuation of sugar confectionery falling under specific chapter headings and being packed in 500 grams packs, with individual pieces weighing less than 10 grams each. The question is whether such products should be valued on the Maximum Retail Price (MRP) basis under Section 4A or under Section 4 of the Central Excise Act, 1944.Valuation Basis - Section 4 vs. Section 4A:The appellant argued that previous judgments, including one by the Hon'ble Supreme Court, supported their position that such goods should be valued under Section 4 and not Section 4A of the Central Excise Act, 1944. The Tribunal referenced a previous decision in the appellant's own case where it was held that individual confectionery pieces weighing less than 10 grams do not fall under Section 4A. This interpretation was further supported by Rule 34(b) of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977, which exempts products weighing less than 10 grams from the requirement of affixing retail sale prices. The Tribunal concluded that the law laid down by the Hon'ble Supreme Court in the appellant's case remained applicable, dismissing the revenue's appeal.Application of Section 11D - Duty Collection:Regarding the confirmation of demand under Section 11D, the Tribunal found that although the appellant had initially raised invoices showing duty under Section 4A, they had issued credit notes for the differential duty amount to customers, indicating that the amount was not collected. Section 11D applies when duty is collected but not deposited with the government, which was not the case here. As a result, the demand confirmed under Section 11D was deemed unsustainable, and the appellant's appeal was allowed.Conclusion:Based on the judgments and legal provisions cited, the Tribunal dismissed the revenue's appeal and allowed the appellant's appeal. The impugned order was set aside, and the appeals were allowed in favor of the appellant.
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