mrp on packaged drinking water

[sv bhasker]

Packaged drinking water is classifiable under 22019090 of the First Schedule to CETA. Whereas the Notification No. 49/2008-CE(NT) prescribes abatement of 45% and 40% in respect of Mineral waters and aerated waters respectively. In absence of mention of pacakaged drinking water in the said Notification,will the assessment of packaged water to be done done under Section4 of CEA and not under Section 4A. Please advice with circulars, case laws if any.

Regards

[Sanjay Sharma]

 

Dear Mr. sv bhasker,

Pls.find below the extract from the Land Mark Supreme Judgement -(Jayanti Foods processing)-

The following would be factors to include the goods in Section 4A(1) & (2) of the Act:

i) The goods should be excisable goods;

ii) They should be such as are sold in the package;

iii) There should be requirement in the SWM Act or the Rules made thereunder or any other law to declare the price of such goods relating to their retail price on the package.

iv) The Central Government must have specified such goods by notification in the Official Gazette;

 v) The valuation of such goods would be as per the declared retail sale price on the packages less the amount of abatement. If all these factors are applicable to any goods,

then alone the valuation of the goods and the assessment of duty would be under Section 4A of the Act.

Regards,

Sanjay Sharma

 

[sv bhasker]

Thank you Sharmaji for your reply.

What I could understand from your reply is that packaged water is assessed to duty under Section 4 as factor No. (iv) is not satisfied in this case as the Notification No. 49/2008CE(NT) does not specify the said item.

Regards.

[YAGAY andSUN]

In continuation to the appended reply, this is to inform you that Legal Meterology Act has replaced the SWM Act.

AI Summary

Valuation under Section 4A limited when notification omits packaged goods; default assessment follows under Section 4. The operative test for applying Section 4A requires goods to be excisable, sold in packages, subject to a statutory requirement to declare retail price on packaging, and specifically designated by central government notification; valuation is then the declared retail price less abatement. Absent specification by notification, the Section 4A mechanism does not apply and valuation/assessment falls back to the general assessment provision in Section 4. The Legal Metrology Act now governs packaging and price declaration requirements.