MRP goods cleared under Not for sale,Excise duty payable on Transaction value

By | November 24, 2015
(Last Updated On: November 24, 2015)

SUPREME COURT OF INDIA

Commissioner of Central Excise, Noida

v.

Control & Switchgears Contactors Ltd.

A.K. SIKRI AND ROHINTON FALI NARIMAN, JJ.

CIVIL APPEAL NOS. 4449-4450 OF 2005 AND 984 OF 2007

SEPTEMBER  1, 2015

Valuation under Central Excise – Retail Sale Price/MRP Based

Facts of the case ;-

 Assessee was manufacturing Contactors, Overload relays, Electrical Timers and Accessories. Assessee was declaring on goods that they were for exclusive use of industries as a ‘raw material’ and not intended to be displayed for sale at a retail outlet .Assessee did not affix MRP thereon and claimed assessment under section 4 based on transaction value

Held by Tribunal

Tribunal held that while assessee had declared that goods were not meant for retail sale, revenue could not produce any evidence to contrary; hence, duty was rightly paid as per section 4 .

HELD by Supreme Court

Issue involved is purely a question of fact .Hence, Tribunal’s findings were confirmed

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