2024 (7) TMI 475

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....ssioner of Central Excise (Appeal-I), Kolkata, 169, A.J.C. Bose Road, Bamboo Villa, 4th Floor, Kolkata - 700 014. 2. The facts of the case are that the appellant is engaged in the manufacture of medicaments falling under Chapter Headings 3003 and 3004 of the Central Excise Tariff Act, 1985. During the period from January 2005 to June 2008, the appellant had removed from their factory packaged medicines covered by the Standards of Weights and Measures Act [hereinafter referred to as the 'SWM Act'] on stock transfer basis to their Patna depot, on payment of duty by adopting MRP based valuation under Section 4A of the Central Excise Act, 1944. Subsequently, on getting orders from Nepal buyers, such medicines were sold to them for export fro....

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....partment's finding regarding determination of assessable value of the goods in question under Section 4 of the Central Excise Act. Accordingly, they submitted that they have already deposited the duty confirmed along with interest before filing this appeal. The appellant mainly contests the imposition of penalty under Section 11AC of the Central Excise Act,1944. 6. The appellant submits that they do not receive or solicit any orders from Nepal buyers at their factory; at the time of clearance of the goods from their depot, they were not aware that the said goods would be cleared from their depot later to the buyers located in Nepal; accordingly, they have cleared the goods on payment of duty to their depot by adopting the MRP as provided....

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....d valuation is applicable only for goods cleared for domestic sales, where the SWM Act is applicable. When goods are sold outside the country, such as Nepal, MRP based valuation is not applicable and the value to be adopted is the transaction value as provided under Section 4 of the Act. This view has been expressed by the Tribunal, New Delhi in the case of Gillette India Ltd. v. Commissioner of Central Excise, Jaipur [2006 (193) E.L.T. 331 (Tri. - Del.)] wherein it was observed that export consignments to Nepal were required to be valued in terms of their transaction value under Section 4 and not in terms of Section 4A, even if the goods under export were specified under Section 4A(1) of the Act. 9.2. We observe that the appellant has f....