2013 (2) TMI 594

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....icines and under the provisions of Notification No.2/05 CE (NT) dated 7.1.2005 and Notification No.4/2005-CE(NT) dated 23.2.05, the medicaments are assessed under the provisions of Section 4A of the Central Excise Act 1944 based on maximum retail price less abatement of 35% / 40%. It was noticed that the appellants are not discharging the duty liability correctly under Sec.4A of the Central Excise Act and on verification of the documents it was seen that the appellants had paid duty on the basis of lower value arrived at under Sec.4A of the Central Excise Act. For the purpose of central excise duty, they had calculated the assessable value after deducting central excise duty element from maximum retail price and thereafter claimed the deduc....

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.... the said letter. He further contended that in the Annexure to the aforesaid letter dated 10.1.2005, the appellants have indicated for each and every product manufactured by them, MRP declared on the package and deducted the excise duty from such MRP and shown the amount equal to MRP less excise duty as "MRP under DPCO" and thereafter the amount equal to 65% of such MRP under DPCO arrived at the aforesaid manner was shown as the assessable value for payment of duty. He submitted that the show-cause notice in this case was issued on 31.3.08 and since they had declared all the calculations in the Enclosures attached to the letter dated 10.1.2005, there is no mis-statement or suppression of fact invoking the extended provisions of Sec. 11A of ....

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.... Notification No.2/2005-Central Excise (N.T.) dated 7.1.2005.     We are clearing our products by payment of Central Excise duty of Chapter Heading No. 3003.10 and 3003.20 on the Ass. Value calculated as per details enclosed.     We have calculated our Ass. Value on Retail sale price as per provisions of the Drugs (Price Control) Order, 1995 as explained in above Notification. 7. Ongoing through enclosures to this letter we find that on the top of the enclosures it is stated "assessable value calculated on Retail Sale Price W.E.F. 8.1.2005 (as per Notfn. No.2/2005-CE (N.T.)" and thereafter the details are given in the tabular form as under:- Product name Pack MRP     - &nbsp....

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....nani, Siddha, Homoeopathic or Bio-chemic systems 35%     2. This notification shall come into force on the 8th day of January, 2005.     Explanation - For the purposes of this notification, "retail sale price" means the retail price displayed by the manufacturer under the provisions of the Drugs (Prices Control) Order, 1995. 10. We find that under this Notification abatement of 35% is to be taken on the retain (sic) sale price of the goods and there is no provision under this Notification that the abatement is to be taken from the retail sale price excluding duty. We find that in the Table given in the Enclosures to their letter dated 10.1.2005 they have shown the MRP of the product but there is no ....