TaxTMI 
TaxTMI 
2008 (8) TMI 234
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....peals), Bangalore. 2. Shri B. S. Janapati, learned Advocate appeared on behalf of the party and Shri Raja Dass, learned JDR for Revenue. 3. We heard both the sides. 4. The issue involved is applicability of Notification No. 20/2001 dated 3-4-2001 in respect of the clearances of the ready-made garments made by the party to M/s. Jet Airways and Doon School and also for Annual sale clearances. The party cleared ready-made garments to M/s. Jet Airways and Doon School and also they cleared for certain Annual sale clearances. The issue involved is what is the valuation to be adopted. It is stated by the learned Advocate that Notification No. 20/2001 dated 3-4-2001 fixes tariff value in respect of the ready-made garments. The tariff value....
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....plied to the supplies made to Doon School as the retail sale price was printed on the packages. That is his conclusion. Therefore he held that the provisions of Notification are applicable to supplies made to Doon School. In respect of the supplies to Jet Airways and for Annual sales, he gave a finding that since no Retail Sale Price was printed on the packages, the application of Section 4 value is appropriate. However, he upheld the penalty imposed under Section 11AC. The party is aggrieved over the impugned order. Revenue is also aggrieved over the same order of the Commissioner (Appeals). Since the issue involved is one and the same, we are taking up the matter together for the disposal. The grounds of the Revenue's appeal are as follow....
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....under the provisions of the Standards of Weights and Measures Act, 1976 (Hereinafter referred to as the Act') or Rules made thereunder or under any other law for time being in force. Section 39 of the Act applies to the Commodities which are cleared, sold, distributed etc. in packed conditions. In terms of Rule 1(i) of the Standards of Weights and Measures (Packaged Commodity) Rules 1977, a 'pre-packaged commodity' means a commodity which, without the purchaser being present, is placed in a package so that the quantity of goods contained therein has a pre-determined value and such value cannot be altered without opening the package. Further in terms of the said Rule, the term 'package' is to be construed as a package containing such pre-pac....
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....e goods purchased by them is for consumption by a group of individuals within that organization. Thus the transaction is a 'retail sale' transaction covered by the first limb of the definition of retail sale which states retail sale in addition to a commodity means the sale distribution or delivery of such commodity through retail sales agencies or other instrumentalities for consumption by an individual or a group of individuals. It was also pointed out that the other transactions are also retail transactions as contemplated under the provisions of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977. Further it was urged that merely because price is not printed on the packages it cannot be said that it is not a retail ....
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....he 1st March, 2001], except as respects things done or omitted to be done before such supersession, the Central Government, hereby fixes tariff value in respect of articles of apparel, not knitted or crocheted, all sorts, falling under sub-heading No. 6201.00 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), at the rate of 60% of the retail sale price that is declared or required to be declared on the retail pack ages under the provisions of the Standards of Weights and Measures Act, 1976 (60 of 1976) or the rules made thereunder or under any other law for the time being in force. Explanation. - For the purpose of this notification, "retail sale price" means the maximum price at which the excisable goods in packag....
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....t for declaring the maximum retail sales price under the Standards of Weights and Measures Act, 1976. We agree with the stand of the Revenue that when there is no requirement under the said Act for declaration of MRP, the benefit of notification 20/2001-C.E. (N.T.), dated 30-4-2001 cannot be made applicable to such transactions. Hence, the demand of differential duty is correct. However, as the issue involved is a question of interpretation of a notification, the party is under the impression that the said notification would be applicable in respect of their transactions. Hence, there is no justification for imposition of any penalty. Therefore, while upholding the duty demand, we set aside the penalty imposed. 10. Since we are of the vi....