BHARTI SYSTEL LTD. Vs. CCE

JUDGEMENT

(1.) APPLICANTS filed this application for waiver of pre -deposit of duty of Rs. 2,12,15,180.

(2.) IN the impugned order the lower authorities held that telephone sets cleared to Department of Telecommunication by the applicants are assessable to duty at the maximum retail price under Section 4A, CE Act.

(3.) THE contention of the applicant is that as per the provisions of Section 4A of the Central Excise Act, 1944 that the duty is to be paid on the maximum retail price on the goods which are required to print MRP on the packing under the provisions of standards of Weights and Measures Act, 1976. Section 34 of the Standards of Weights and Measures (Packed Commodities) Rules, 1977 provides that the Rule shall not apply to any packages containing a commodity, if, the marking on the packages indicates that it has been specially packed for the exclusive use of any industry as a raw material or for the purpose of servicing any industry. The contention of the applicant is that as the telephone cleared to the Department of Telecommunication are for the servicing of the industry, therefore, they are not required to mention the maximum retail sale price on the packages. They also relied upon the Board Circular dated 11.8.97, and submits that when a MRP is required to be indicated under the provisions of Standards of Weights and Measures Act, 1976 or any other law, the provisions of Section 4A will be applicable and in the case where the manufacturer voluntarily fixed the MRP which is not statutorily required, then the excise duty on goods in such packages shall not be charged on the basis of Section 4A of the Central Excise Act, 1944. Their submission is also that Bank guarantee of Rs. 1,52,27,165 is still alive which was furnished at the time of provisional assessment of the goods in question under Rule 9B of the Central Excise Rules.