CA Bimal Jain
Facts:
Control & Switchgears Contactors Ltd. (the Respondent) was engaged in the manufacture of contactors over load relays, electrical timers and accessories thereof and motor starters. The Respondent was declaring on goods that they were for exclusive use of industries as a ‘raw material’ and not intended to be displayed for sale at a retail outlet.
Thus, the Respondent did not affix Market Retail Price (MRP) thereon and claimed assessment under Section 4 of the Excise Act based on transaction value. The Department has alleged and passed the Order that valuation of these goods was to be under Section 4A of the Excise Act, despite the fact that no MRP was written on the packages.
Held:
The Hon’ble Supreme Court affirmed the decision of the Tribunal, wherein it was held that while the Respondent had declared that goods were not meant for retail sale, revenue could not produce any evidence to contrary and hence, duty was rightly paid as per Section 4 of the Excise Act.
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