KANIA (INDIA) Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE duty amount stands confirmed against the applicant along with imposition of penalty of identical amount. The appellant are engaged in the manufacture of staplers. They also procure stapler pins from the other manufacturers, who cleared the same on payment of duty leviable in accordance with law. In some cases, such stapler pins become a part of combi -pack of stapler and stapler pins. The appellant after availing credit of duty paid on the stapler pins cleared the carton pack on an MRP which is inclusive of the cost of the stapler pins. There is no dispute about the same. Further, as a promotional scheme, the appellant also supplied stapler pins in the same carton box as received from their suppliers free of cost to their distributors. The Revenue's contention is that the cost of such stapler pins procured by them from other manufacturer and supplied to their distributors is required to be added in the MRP of the stapler cleared on payment of duty in terms of Section 4A of Central Excise Act.

(2.) AT the prima facie stage, we find that the appellant is not undertaking any further activity on stapler pins procured by them from the other manufacturer. The same simply accompany the staplers manufactured by them on which duty has already been paid. The stapler pins are also duty paid. As such, we at this stage, find no justifiable reasons to direct the applicant to pay the duty for the second time in respect of the same stapler pins on which no activity is done by them. In view of the above, we dispense with the condition of pre -deposit of duty and penalty and allow the stay petition unconditionally.