TaxTMI 
TaxTMI 
2012 (12) TMI 920
X X X X Extracts X X X X
X X X X Extracts X X X X
..... during December, 2002 to May, 2003 and Feb. 2003 to Jan. 2004 were notified under Section 4A of the Central Excise Act, 1944 for determination of their assessable value on the basis of their MRP and accordingly the assessable value of these items, when cleared in packaged form for retail sale, were required to be determined on the basis of their MRP declared on the packages i.e. MRP minus abatement, as notified by the Central Government under by notification issued under Section 4A. During December, 2002 to May, 2003 the appellant cleared a refrigerators of model S-166, NE SI67 and S 170 and washing machines of models 60 T, 36 TDC and 45 T as "combination packs" under a combined MRP which was less than the sum of their individual MRPs. Du....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t show cause notice was for demand of allegedly short paid duty in respect of the clearances of the combination pack of refrigerator with washing machine and the second show cause notice was for demand of allegedly short paid duty in respect of the combination packs of refrigerator with washing machines, refrigerator with water purifier and CTVs with VCD players. 1.3 Both the show cause notices were adjudicated by the jurisdictional Dy. Commissioner by a common order-in-original dated 30-11-2003 by which the above mentioned duty demands were confirmed along with interest and besides this, penalties of equal amounts were imposed on the appellant company under Section 11AC of the Central Excise Act, 1944. 1.4 On appeals being ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....MRP has been declared of a combination pack, that MRP would the basis for determining assessable value of the combination pack and not the MRP of the individual item in the combination pack, that the issue involved in this case stands decided in the appellant's favour by the judgment of the Tribunal in the case of Millenium Appliances India Ltd. reported in 2009 (248) E.L.T. 713 (Tribunal-Bang.), that the same view has been taken by the Tribunal in the case of ICON Household Products reported in 2007 (216) E.L.T. 579 (Tribunal-Chennai), that this view of the Tribunal is in accordance with the Board's Circular No. 673/64/2002/CX., dated 28-10-2002, according to which in a multi-piece package i.e. a package of containing two or more of the it....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hich has been upheld by the Apex Court, which would be applicable. He, therefore, pleaded that there is no infirmity in the impugned order. 5. We have considered the submissions from both the sides and perused the records. The undisputed facts are that all the items which are being cleared in combination pack are notified under Section 4A for assessment of the duty on the basis of their MRP. There is also no dispute that each of the items in the combination pack was individually packed and while the individual items of the combination pack were not carrying individual MRP on them, there was MRP for the combination. There is also no dispute that the combination packs were not further packed in a bigger pack and according to the Appel....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion 4A is that the Central Government in respect of the items notified under this Section, has also by notification issued under this Section, notified the percentage of the abatement to be deducted from the MRP and the assessable value of the item is the MRP minus abatement. The quantum of abatement may be different for different items. 7. In terms of the provisions of the Central Excise Rules, the duty is payable on any excisable goods at the time of their clearance from the factory or bonded warehouse and the same is payable irrespective of whether the goods are cleared individually or in combination with other items being manufactured or are cleared on sale or are cleared for free distribution for the purpose of sale promotion. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r, in our view, cannot be applied to a combination pack. Though combination pack are recognized in the SWM Rules, they have no recognition in the Central Excise Law. We are of the view that it is the judgment of the Tribunal in the case of G.S. Enterprises (supra) which has been affirmed by the Apex Court, which is applicable to the facts of this case and accordingly, the duty payable in respect of the clearances of the combination pack of dissimilar item, both of which notified under Section 4A have to be determined on the basis of their individual MRPs and not on the basis of MRP of the combination pack, which in our view, has no relevance for assessment of duty on the goods being sold as a combination pack. 10. There is one more ....