COMMISSIONER OF CENTRAL Vs. GODREJ INDUSTRIES LTD.

JUDGEMENT

(1.) THE dispute in the present appeal of the revenue relates to the valuation of "Cinthol Lime Fresh", and "Cinthol Scent Fresh" toilet soaps manufactured by the respondents and supplied free with Dabur Vatika Oil, Hit, Double Diamond Tea and Sargam Tea.

(2.) THE assessee's contention is that the valuation of the said goods should be in accordance with the provisions of Section 4 of the Central Excise Act, Revenue is of the view that since the said toilet soaps are covered under Section 4A, they should be assessed to duty on the basis of the MRP after abatement. The goods were cleared by the manufacturer as per the contract price with their buyers on the ground that they were meant for free distribution along with other products and were not meant for retail sale to the ultimate customer.

(3.) THE original adjudicating authority, by holding that the product should be assessed to duty under Section 4A of the Central Excise Act, confirmed the demands against the assessee as also imposed penalty. However, on appeal against the above order, the Commissioner (Appeals) accepted the assessee's stand and observed that the MRP mentioned on the package has been struck out by the assessee and the wrapper mentioned that the same is free with other products, the provisions of Section 4A will not apply. He has further observed that the said Section apply, when the goods are sold under MRP, as per the requirements of the Standards of Weights and Measures Act and Rules made there under. Accordingly, he set aside the original order and allowed the appeal. Hence the present appeal filed by the revenue.