2010 (4) TMI 418 - AT - Central Excise

Retail Price Compliance Secures Concessional Duty Rates

The Tribunal rejected Revenue's appeal against Orders-in-Appeal concerning Central Excise duty on cement sold to Andhra Pradesh State Housing Corporation ... Cement- Exemption- Declaration of retail sale price. Contention of Revenue that retail sale price affixed to avail concessional rate of duty prescribed in the Notification No. 4/2007-C.E. Held that- requirement of not printing of retail sale price not applicable to the respondent as goods sold to Andhra Pradesh State Housing Corporation Ltd. By indicating the price at which it was contracted. No case of revenue that respondent not required to declare the retail sale price on the supplied bags. Cement bags manufactured by the respondent not out of the purview of Standards of Weights and Measure (packed Commodities) Rules, 1977, as they were required to declare the RSP on the product. Authorities under the Standards of Weights and Measures Act, informed all the respondents for mandatory declaration of retail sale price. Issues:Revenue's appeal against Orders-in-Appeal regarding Central Excise duty on cement sold to Andhra Pradesh State Housing Corporation Ltd. and others.Analysis:1. The appeals by Revenue against Orders-in-Appeal were disposed of collectively due to the same issue involved in all cases.2. The dispute revolved around the interpretation of Notification No. 04/2007-C.E. regarding concessional duty rates for cement based on retail sale price.3. Revenue argued that the assessees printed retail sale prices on cement bags to avail concessional duty rates, which was against the Notification's conditions.4. The learned Commissioner (Appeals) set aside the original orders, stating that the cement was sold in packaged form with the retail sale price declared, making them eligible for concessional rates.5. The Counsel argued that the supplies made to Andhra Pradesh State Housing Corporation Ltd. were not for industrial use, making the Notification applicable as retail sale prices were printed.6. The Commissioner (Appeals) found that the respondents complied with the SWMPC Rules by declaring retail sale prices, as confirmed by the Controller, Legal Metrology, Andhra Pradesh Government.7. The Tribunal concurred with the Commissioner's findings, stating that the respondents were required to declare retail sale prices and were eligible for concessional duty rates. The appeals by Revenue were rejected.This judgment clarified the application of Notification No. 04/2007-C.E. regarding the declaration of retail sale prices on cement bags sold to specific consumers, affirming the eligibility for concessional duty rates based on compliance with the Standards of Weights and Measures (Packaged Commodities) Rules, 1977.