Socomec India Private Limited Vs Principal Commissioner of CGST (CESTAT Chandigarh)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chandigarh, considered an appeal against the Commissioner’s order dated 27.11.2010 confirming a demand of differential Central Excise duty of ₹1,64,71,083 along with interest and equal penalty. The dispute concerned the valuation of switchgears manufactured by the appellant under Heading 8536 of the Central Excise Tariff Act, 1985. The appellant manufactured industrial switchgears ranging from 63A to 3150A for 415V three-phase connections and supplied them either directly or through dealers. Each package carried the declaration that it was specially packed exclusively for industrial use and was not intended for retail sale, and no Maximum Retail Price (MRP) or Retail Sale Price (RSP) was printed. The appellant discharged duty on transaction value under Section 4 of the Central Excise Act, 1944.
Following an investigation by the DGCEI, the Revenue formed the view that the products were notified under Section 4A of the Central Excise Act for MRP-based valuation under Notification No. 13/2002-CE (NT), as amended, read with the Standards of Weights and Measures Act, 1976 and the Standards of Weights and Measures (Packaged Commodities) Rules, 1977. A show cause notice dated 02.04.2009 proposed recovery of differential duty, interest and penalty, which was confirmed by the Commissioner.
