AMTREX HITACHI APPLIANCES LTD. Vs. CCE

JUDGEMENT

(1.) AS per facts on record, the appellant is engaged in manufacture of air conditioners, which are leviable to Central Excise duty on the basis of Maximum Retail Price (MRP) in terms of provisions of Section 4A of Central Excise Act. The appellant is, accordingly, declaring the MRP on the packages of different types of air conditioners and paid duty on the basis of MRP so declared, less the permissible abatement under notification issued in terms of Section 4 of the Act.

(2.) THE appellant's factory is situated at Silvassa and falls under Sales Tax exemption zone. The sales tax exemption is applicable only if the goods are sold within Silvassa. As such, if the goods are sold within Silvassa they were not attracting any sales -tax as contrast to the air conditioners sold outside Silvassa, which would attract sales tax. As such, the appellants affixed separate MRPs in respect of air conditioners being manufactured by them i.e. air conditioners for direct sale from the factory in Silvassa to the ultimate customers and the air conditioners have sales through the dealers situated outside the Silvassa carried different MRPs. The two MRPs were, thus, printed on two different types of air conditioners, depending upon as to whether the sale was directly from the factory in Silvassa or the same was through the dealers/agent/depots etc. located outside Silvassa. The MRP declared in respect of air conditioners for direct sale to the customers from Silvassa was less than the MRP declared in respect of packages of air conditioners which were the stock transferred to the depot for onward sale there -from. The difference in the two MRPs was exactly equivalent to the sales tax element involved.

(3.) AFTER appreciating submissions made by both sides duly represented by Shri B.L. Narasimhan, learned advocate and Shri D.S. Negi, SDR, we find that the Commissioner for confirming the demand has relied upon the Explanation 2 (a) of Section 4A of the Act, which reads as under: