Amar Radio Corporation Vs Commissioner of Customs (CESTAT Bangalore)
CESTAT Bangalore held that import of brushless DC/Axial fans meant for use in electronic industry should be valued at Transaction Value under Section 4 of Central Excise Act and accordingly, demand of Countervailing Duty on the same unsustainable.
Facts- The issue in the present appeal is whether the appellant who had imported brushless DC/Axial fans meant for use in electronic industry for manufacturing electronic equipment like, medical equipment, inverters, control panels, etc., are excisable to Countervailing Duty (CVD) on the transaction value in terms of Section 4 of the Central Excise Act, 1944 (CEA) or under Section 4A of the Central Excise Act.
Conclusion- Held that goods imported by the appellant is falling under the category of goods under Legal Metrology (Packaged Commodity) Rules (LMPCR), 2011. However, as per Rule 6 exemption is given to importers who are importing the goods for institutional or industrial consumers. As per the law laid down by Apex Court in the matter of Jayanthi Food processing, valuation under section 4A of CEA, 1944 can be adopted only if there is a requirement under Legal Metrology (Packaged Commodity) Rules (LMPCR), 2011 to declare MRP of such goods on the packaging. Moreover, even after selling the product to various customers over a period of time without affixing MRP, the Authority entrusted under Legal Metrology (Packaged Commodity) Rules (LMPCR), 2011 to ensure compliance of the said provision of law has not raised any objection. Thus, the goods sold by the appellant cannot be considered as goods falling under Legal Metrology (Packaged Commodity) Rules (LMPCR), 2011 to adopt method of valuation as per Section 4A of the CEA, 1944 as held by Adjudication/Appellant Authority.
