LOREAL INDIA PVT. LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule. Rule, made returnable forthwith. By consent, the petition is taken up for final hearing. Whether on the facts and in the circumstances of the case, the CESTAT by its order dated 21st May, 2012 was justified in remanding the matter back to the Commissioner for fresh adjudication, is the question raised in this writ petition.

(2.) The petitioner is engaged in the manufacture of cosmetic products like hair dye, shampoo, colourants, skin care, etc. The above products manufactured by the petitioner were classified into two categories, namely technical products and retail sale products. The technical products are meant for exclusive use in the Saloon/Beauty Parlour and not meant for sale to public. The retail products are first sold to the dealers and the dealers in turn sell the same to the Saloon/Beauty Parlour and the Saloons/Beauty Parlours would then sell it to the customer. The dispute in the present case is, whether the petitioner is justified in clearing the technical products by computing the assessable value on the basis of the maximum retail price (MRP) instead of the transaction value.

(3.) By a show cause notice dated 19th June, 2009 the petitioner was called upon to show cause as to why action should not be taken for clearing the technical products by offering the Excise duty on the basis of retail sale price under Section 4A of the Central Excise Act, 1944 ['the Act' for short] instead of clearing the same by adopting the transaction value under Section 4 of the Act.