TaxTMI 
TaxTMI 
2018 (3) TMI 485
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....nufacture of cylinder liners and are registered with the Central Excise Department. The said cylinder liners are in the nature of parts / components of automobiles. The said goods were brought under MRP basis levy of duty of excise with effect from 1.6.2006. The appellants cleared the said goods in bulk to State Transport Undertakings for being used by them in the maintenance of their fleet. The clearance to these transport undertakings were subject to duty of excise based on their transaction value under section 4 of the Central Excise Act, 1944. The department was of the view that the duty has to be on the basis of MRP. Show cause notices were issued proposing demand of differential duty, interest and for imposing penalties. After due pro....
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....and not for retail sale to ultimate consumer. Therefore, there is no requirement to affix MRP on such clearances of cylinder liners. When the provisions of Standards of Weights and Measures Act and Rules do not apply, consequently the provisions of section 4A of the Central Excise Act would also not be applicable. That the appellant has rightly assessed the goods under section 4 of the Act. The authorities below have relied on sub-clause (a) of Rule 34 to state that the appellant has to affix MRP on the goods and also that the subject goods has to be levied excise duty on the basis of MRP. That the said provision in Rule 34(a) was amended with effect from 17.7.2006 thereby omitting subclause (a) from Rule 34. Both the lower authorities have....
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....The exemption in Rule 34 is not available to the appellant for the reason that the subject goods are components, parts used in workshop or servicing station. That the demand, interest and penalties have been rightly confirmed and that the impugned order does not require any interference. 6. Heard both sides. 7 For better appreciation, relevant provisions of law is reproduced as under: "24- Applicability of the Chapter- The provisions of this chapter shall not apply to- '(a) Packages of commodities containing quantity of more than 25 kg or 25 litre excluding cement and fertilizer sold in bags up to 50 kg; and (b) Packaged commodities meant for industrial consumers or institutional consumers.' Explanation :- F....
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....g any industry, mine or quarry: Provided that this exemption shall not be available in respect of- (i) Any yarn which is sold in hanks to handloom weavers, (ii) Any component, part material used in any workshop, servicing station or any other place where servicing or repairing of any bicycle, tricycle or motor vehicle within the meaning of Motor Vehicles Act, 1939 (4 of 1939), is undertaken" 7. It is not disputed that the appellant had cleared the cylinder liners in bulk to State Transport Undertakings for their own consumption. There is no dispute that the goods were not cleared for retail sale. Chapter 2 of Standards of Weights and Measures Act and Rules 1977 provides that the said Rules do not apply when the goods....