LOKNATH PRASAD GUPTA Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE appellant is engaged in the manufacture of branded chewing tobacco (Raja Chap Khaini) falling under subheading No 2404.41 of the CETA 1985. The goods are packed in 5 gms and 9 gms pouches (in strip form with perforation in between each strip). These unit pouches of 5 gms and 9 gms are the retail pouches and that maximum retail price (MRP) (inclusive of all taxes) is indicated in addition to other details as regards the appellants name and address, brand name, month and year of packing and statutory warning.

(2.) 26 such unit pouches in case of 9 gms and 48 unit pouches of 5 gms unit in strip form are then packed in polyethylene packets, which are marked "Wholesale Package (to be opened and sold loose)". There is no indication on this polythene packages as regards MRP or any other price. These polythene packs are thereafter packed in gunny bags each comprising of 104 wholesale packages, which are sold to wholesale dealers/distributors/stockists on principal to principal basis, who in turn sell the goods in polythene packages to various retailers who will sell individual pouches to consumer. The goods falling under Heading 2414.41 are notified by the Central Government under Section 4A of the Central Excise Act, 1944 by amending Notification 10/2003 -C.E.(N.T.).

(3.) THE period involved in the present appeal is 1 -9 -2004 to 31 -7 -2004. During this period, there was no provision for declaration of MRP under the provisions of Standards of Weights and Measures Act, 1976 (in short 1976 Act) or under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 (in short 1977 Rules). In these circumstances, duty was discharged on the goods cleared during this period by arriving at the assessable value under Section 4 of the Central Excise Act, 1944 on the basis of actual price charged from wholesale buyers.