Document Fragment View

Matching Fragments

(i) Commissioner of Central Excise and Service Tax, Noida vs. M/s/ Sanjivani Non-Ferrous Trading Pvt. Ltd. [2019 (365) E.L.T. 3 (S.C.)]
(ii) M/s Classic Marble Company Pvt. Ltd. vs. Commissionerof Customs, Nhava Sheva-II [Final Order No. A/85726/2020 dated 11.06.2020, passed in Customs Appeal No.87484 of 2018.

2.4 Learned Advocate further submitted that 45 consignments out of the subject 47 consignments had been admittedly imported by the appellants in wholesale packages, containing dozens of pieces of individual items. It is further stated by him that the appellants were not selling the said products in retail, but were selling the entire package in the condition, in which these were imported. Thus, he stated that the provisions of Drugs and Cosmetics Act, 1940 and the rules framed thereunder should be applicable to the goods imported by the appellants, and not the Legal Metrology (Packaged Commodities) Rules, 2011.

3. Shri Adeeb Pathan, learned Authorised Representative (AR) appearing for the Revenue reiterated the findings recorded in the impugned order and further submitted that the department's action in re-determination of the RSP is justified, where ever it is noticed that there is under valuation of the goods. Learned AR also submitted that affixation of MRP/RSP is a statutory requirement to be complied by the importer dealing in packaged commodities in terms of Legal Metrology (Packaged Commodities) Rules, 2011; since, the appellants had not complied with the requirements contained therein, confirmation of the adjudged demands in the impugned order is in conformity with the statutory provisions.

(f) the fraudulent or manipulated documents."

Legal Metrology (Packaged Commodities) Rules, 2011 Rule 2. In these rules, unless the context otherwise requires--

(k) "retail package" means the packages which are intended for retail sale to the ultimate consumer for the purpose of consumption of the commodity contained therein and includes the imported packages;

(r) "wholesale package" means a package containing--

(i) a number of retail packages, where such first mentioned package is intended for sale, distribution or delivery to an intermediary and is not intended for sale direct to a single consumer; or...

9.1 We find that the learned adjudicating authority has confirmed the differential demand of Basic Customs Duty (BCD) by adopting to the deemed value based on MRP, for arriving at the transaction value. The valuation of goods for the purpose of computation of BCD amount has to be in accordance with Section 14(1) ibid and has thus, to be based on transaction value and not on the basis of MRP declared on the said goods. Therefore, no recommendation has been provided in the Customs statute for adopting the MRP as the basis for arriving at the transaction value of the imported goods. Even considering the fact that the transaction value can be arrived at on the basis of RSP, the wholesale dealers (appellants herein) are outside the scope and ambit of the Legal Metrology (Packaged Commodity)Rules, 2011. Rule 2(k) in the said rules has defined the phrase 'retail package' to mean the packages which are intended for retail sale to the ultimate consumer for the purpose of consumption of the commodity contained therein. Similarly, the phrase 'wholesale package' has been defined in Rule 2(r) ibid to mean a package containing a number of retail packages, where such first mentioned package is intended for sale, distribution or delivery to an intermediary and is not intended for sale directly to a single consumer. The provision regarding the declaration to be made on every package has been contained in Rule 6 ibid, and the said rule is meant for the retail package(s) and not to the wholesale package(s), for which separate provisions have been made in Rule 24 ibid. In the proviso clause appended to Rule 24 ibid, it has been specifically mandated that nothing contained in this rule shall apply in relation to a wholesale package, if a declaration similar to the declaration specified in this rule, is required to be made on such wholesale packages by or under any other law, for the time being in force.