2023 (5) TMI 1426

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....Since the issue involved in these appeals are common, even though pertaining to different units, these are taken up together for hearing and disposal. 2.1. The facts, common in all these appeals, are that the appellants are engaged in the manufacture of AC/DC drives, low voltage panels / switchgear and parts, Air Circuit Breakers (ACB), Miniature Circuit Breakers (MCB), Moulded Case Circuit Breakers (MCCB) etc. falling under Chapter 85 of Central Excise Tariff Act, 1985. The said goods are imported in bulk in large cartons called as Master Boxes and each of these large cartons contains several small boxes which in turn contains a unit number of product. On receiving the goods in their factory, the small boxes are removed from the big car....

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.... demanding duty of Rs. 1,83,20,947/- and Rs. 2,29,26,789/- respectively. On adjudication, the demands have been confirmed for both these units by the respective orders passed by the Commissioner of Central Excise along with penalty and interest. Hence, the present appeals. 3. Learned advocate at the outset submitted that the goods such as AC/DC drives, ACBs, MCBs, relays etc. are meant only for industrial consumers which are cleared to the said consumers either directly or through the channel partners / distributors. The goods cleared to industrial consumers through channel partners if weighing less than 25 kgs, the same are assessed to MRP based assessment and wherever the weight was more than 25kgs, the duty was paid on the t....

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.... than 25 kg. The contention of the department is that when the clearance is through the channel partners, they are not excluded from the provisions of Legal Metrology Rules/Act. The appellants contend that as it is impossible for the manufacturers to reach all industrial and institutional costumers in every nuke and corner of the country, the goods are made available through their channel partners, in addition to direct sale to the consumers. We find that the dealer is not a individual consumer and the goods are routed through them to the industrial consumers. The department had no objection in case of very same goods cleared directly to the industrial consumers. Thus, there is an ambiguity in the treatment of the impugned goods by the depa....