TaxTMI 
TaxTMI 
2024 (4) TMI 1234
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....learance of the said goods by declaring the Retail Sale Price (RSP) on the goods meant to be sold to Original Equipment Manufacturers(OEMs). They have addressed a letter to the Department saying that since the goods were to be sold directly to the manufacturers, no MRP based assessment is applicable; however on the insistence of the Department, they declared the MRP on the goods awaiting clearance from Customs. Later, it was found that the appellant had sold the goods at a higher price than the declared MRP. Consequently, a show-cause notice was issued to them on 30.07.2015 proposing to recover the differential duty of Rs. 42,04,845/- applying the MRP based assessment along with interest and proposal for penalty. The said show-cause notice was adjudicated and the differential duty was confirmed and penalty under Section 114A and penalty of Rs. 40,00,000/- under Section 114AA was imposed on the appellant; penalty of Rs. 4 lakhs under Section 112(a) and Rs. 10,00,000/- under Section 114AA were imposed on Shri H. Kumar, Managing Partner. Similarly in appeal C/21208/2016, appellant filed Bill of Entry No. 7499374 dated 25.11.2014 and 7755065 dated 19.12.2014 fo....
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....ed Commissioner erred in holding that sales are not for industrial consumers whereas the appellant has clearly stated they were liable to pay duty on RSP only in the case of minuscule sale made for replacement but that by itself cannot be make other bulk sales as a retail sales. He has submitted that the learned Commissioner (Appeals) has misinterpreted the provisions of Rule 2(bb) of the Legal Metrology (Packaged Commodities) Rules, 2011. Further, he has submitted that the issue is covered by the judgment of the Hon'ble High Court of Karnataka in the case of Ewac Alloys Ltd. Vs. UOI [2012(275) ELT 193 (Kar.)], which has been followed by the later in the case of CCE, Bangalore-III Vs. Lotus Power Gears Ltd. [2017(346) ELT 347 (Kar.)]. Also, they placed reliance on the judgment of this Tribunal in the case of Remi Sales and Engineering Ltd. Vs. CC, Mumbai [2019(365) ELT 142 (Tri. Mum.)] and Mahle Engine Components India Pvt. Ltd. Vs. CC, New Delhi [2020(374) ELT 425 (Tri. Del.)]. Further, he has submitted that in view of the amendment later brought to the provisions of Legal Metrology (Packaged Commodities) Rules, 2011 in the year 2015 by way of insertion of Rule 2-A, explanation pr....
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....ce of the Department; the RSP was declared ranging from Rs. 66 to 170 per piece. On enquiry by the Department, it was found that the actual RSP on these products were Rs. 135 to to Rs. 375 per piece being sold by M/s. Bajaj Electrical Ltd. in the market. On investigation, it revealed that the assessee are importing these smart glow torches of different sizes from China in bulk and after importation, they unpack, print "Bajaj Logo" on the torches and insert and staple the card indicating details such as model, power supply, charging time etc. and affix the label indicating MRP and repack the torches as per the agreement with M/s. Bajaj Electrical Ltd. and these are sold later to the Bajaj Electrical Ltd. at RSP ranging from Rs. 135 to Rs. 375 per piece. In the said factual background, the Tribunal after analysing the provisions of Legal Metrology (Packaged Commodities) Rules, 2011 held as follows:- 8. As regards the appeal of the importer, the declaration of MRP for the purpose of levy of CVD is required only when there is a statutory requirement under the Legal Metrology (Packaged Commodities) Rules, 2011 to declare on the package thereof the retai....
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....se of goods it cannot be said that the same are intended for retail sale. Therefore the goods has to be assessed on transaction value. It was submitted by them, sale is made to institution i.e. hospitals, blood banks, Research institute, etc. are not covered under the definition of "Retail sale". We find that in terms of Rule 2A of the provisions of declaration of RSP is not applicable to the following types of goods : 5.1 Rule 2A of the PC Rules, 1977 reads as follows :- "2A. 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 :- For the purpose of this rule,- (a) Institutional consumer. - Means those consumers who buy packaged commodities directly from the manufacturers/packers for service industry like transportation (including airways, railways), hotel or any other similar service industry. (b) Industrial consumer. - Means those consumers who buy packa....