2017 (8) TMI 1160

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tion 4 of Central Excise Act, 1944 for Air Conditioners having capacity above 3.0 TR and M.R.P. based assessment for Air Conditioners having upto TR and they are marketed through their branch offices situated in Chennai, Hyderabad, Cochin, Bangalore etc. They obtain firm purchase orders from the customers directly on the respondent and sent the same to the factory for production and clearance. It was alleged that each of the Air Conditioners sold was on the basis of contracted/ negotiated price and, therefore, it appears that the respondents have been wrongly adopting the valuation under section 4A of the Central Excise Act, 1944 in respect of the Air Conditioners having capacity upto 3.0 TR which were sold directly to the consumer without ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ce. In the instant case, the price at which the goods are sold to customer does not include, freight commission payable to dealers' advertisement charges, and charges for packing, delivery, forwarding, etc; hence, the M.R.P. printed on the containers of Air Conditioners cannot be subject to any abatement in terms of section 4A. In view of the foregoing, a SCN dated 10.03.2004 was issued to the respondents inter alia proposing determination of the value of Air Conditioners upto 3.0 TR capacity sold direct to the customers under section 4 of the Central Excise Act, 1944 instead of section 4A, considering the contracted/negotiated price as cum-duty-price, and recovery of differential duty of Rs. 21,03,740/- payable by the respondents (work....