TaxTMI 
TaxTMI 
2019 (2) TMI 747
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....free along with their products such as Philips CFL lamps, Bajaj Almond hair oil. As these soaps are given free there is no price. However, in order to indicate to the customers the value of the free soaps supplied the appellant printed the MRP and scored it out. It was also indicated on the wrappers that they are not for sale. A show cause notice dated 07.08.2009 was issued to the appellant demanding duty based on Retail Sale Price under Sec.4A of Central Excise Act holding that the product is liable to be valued under Sec.4A. It was also proposed to charge interest and impose penalties on the appellant. After following due process the original authority confirmed the demand and interest and imposed penalty. Aggrieved, the appellant filed t....
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....e not sold to ultimate consumer. Accordingly, appellant prayed that the impugned order may be set aside. 4. Learned departmental representative reiterates the findings of the lower authority and asserts that since the MRPs indicated on the wrappers of the soaps, though scored out, valuation has to be done as per Sec.4A of the Central Excise Act, 1944. 5. We have considered the arguments on both sides. The facts are not in dispute; the soap in question has been manufactured by the appellant and the wrappers clearly indicate that they are not meant for sale. They do indicate MRP but scored out it clearly indicating that the price is only for information and not for sale. Sec.4A of the Central Excise Act reads as follows: "Section 4A.....
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....n (1); or (b) tampers with, obliterates or alters the retail sale price declared on the package of such goods after their removal from the place of manufacture, then, such goods shall be liable to confiscation and the retail sale price of such goods shall be ascertained in the prescribed manner and such price shall be deemed to be the retail sale price for the purposes of this section." 6. If this soap had been manufactured for sale, it is not in dispute that they would have been covered by Sec.4A as the soaps are covered by the provisions of Legal Metrology Act and Rules and they have been notified under Sec.4A. However, in this case, the soaps have not been sold and it is evident that they were not meant for sale but were made....
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....question of Rule 6(1)(f) being attracted. There is a clear indication in the definition of retail sale price as provided in Rule 2(r) which clearly explains that the MRP means the maximum price at which the commodity in packaged form may be sold to the ultimate consumer. Thus, the definition of salein Section 2(v) of the SWM Act becomes relevant. Therefore, unless there is an element of sale, as contemplated in Section 2(v), Rule 6(1)(f) will not be attracted and thus such package would not be governed under the provisions of SWM (PC) Rules which would clearly take such package out of the restricted arena of Section 4A(1) of the Act and would put it in the broader arena of Section 4 of the Act. 30. Shri Lakshmi Kumaran lastly relied on R....