TaxTMI 
TaxTMI 
2004 (7) TMI 171
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.... Central Excise Tariff Act (Godrej Permanent Hair Dye and Godrej Kali Mehendi). The packing is 3 gm sachets and 3 such sachets are put in a carton. Net weight of the product in each carton is 9 gms. (b) The issue involved whether the product as above and taken out in this manner cleared on payment of duty by the appellant are required to duty levied on value as per Section 4 or Section 4A of the Central Excise Act on MRP (Maximum Retail Price declared on Package.) (c) The relevant notification applicable in this two case have the period July 2001 to December 2002 are Notification No. 5/2001-C.E. (N.T.), dated 1-3-2001 and Notification No. 13/2002-C.E. (N.T.), dated 1-3-2002, which have been issued and bring goods falling u....
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....w for the time being in force. As the packing contains a net quantity of only 9 gms and such packing is not required to carry MRP statutorily under the Standards of Weights and Measures Act, the Appellants' products cannot be assessed under Section 4A, but is required to be assessed under Section 4 of the Act. A copy of the relevant provisions of the SOW & M(PC) Rules." 3. The reading of Circular No. 341/64/97-TRU, dated 11th August 1997, indicates, that Section 4A applies only when there is a statutory requirement of affixing/declaring MRP. When such manufacturers voluntarily affixed MRP, they shall not be charged the duty on the basis of Section 4A of the Act and notification. While Letter No. 103/1/97-CX. 3, dated 30th April, 1998....
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.... a manufacturer packer. Further Rule 17(1) provides for declaration of certain additional details in respect of multi-piece packages such as sale price of the multi-piece package and the number of individual piece of the commodity contained in such packages. However, under Rule 34 exemption in respect of certain packages have been provided. In particular sub-rule (b) to Rule 34 provides that the MRP provision for not apply to a package containing a commodity if the net weight or measure of a commodity is 10 grams or 10 ml or less, if sold by weight or measure. Some manufacturers have claimed that the multi-piece package containing individual pieces of less than 10 grams or 10 ml or less, even though the net quantity of such multi-piece pack....
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....ra 3 in a sweeping manner that all multi-piece packages (without specifying the net content of the product) being not eligible for the exemption under Rule 34(b) is contrary to law. It appears that the clarification in Para 3 is to be constructed to cover only the type of multi-piece packages regarding which the query was made by some manufacturers. Obviously if the net content of the multi-piece package is in excess of 10 gms or 10 ml, exemption from declaration of MRP under Rule 34(b) is not applicable to such packages. It is further submitted that if the circular is so read, then the packages of the type involved in the present appeals i.e. multi-piece package containing less than 10 gms 10 ml will be eligible for exemption under Rule 34....
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....rpose of assessment under Section 4A (Circular No. 673/64/2002-CX, dated 28th October, 2002) seeks to bring uniformity in valuation of multi-piece packages under different circumstances. Further, it also modifies the earlier Circular dated 24-5-2002 to this extent, that if one of the two prices declared on the package is scored out then such scored out MRP should be ignored. From the circulars issued time to time it is apparent that the view has consistent been that if a manufacturer is not legally required to be declare the MRP on a package, then the provisions of Section 4A of the Central Excise Act will not be applicable for …… Of assessment of duty on such packages. Rule 34(b) of the Rules under Standards of Weights and Measures Act....