2018 (6) TMI 641 – CESTAT NEW DELHI – 2018 (363) E.L.T. 871 (Tri. – Del.) – MRP Based Valuation – it was alleged that the assessee removed the MRP sticker – Held that:- There is no further allegation that any new MRP sticker were affixed to the goods in question. Admittedly, the provisions of Section 2(f)(iii) provides deemed manufacture definition only when the goods are labelled or relabelled or MRP is altered, which itself establishes the fact of a fixation of MRP on the goods – In the absence of any allegation of fixation or alteration of MRP, the reasoning adopted by Commissioner (Appeals) cannot be faulted upon – appeal dismissed – decided against Revenue. – Appeal No. E/51238-51240/2018-SM – Final Order No. 52207-52209/2018 – Dated:
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estigations made by the Revenue revealed that such MRP stickers were being removed by them. However, it also came to the notice of the officers that no fresh MRP was being declared under the said goods, which were being sold by the respondents without affixing the said goods with any new MRP. However, they entertained a view that such removal of MRP sticker amounts to manufacture, in terms of Section 2(f) of Central Excise Act, 1944 which provides a deeming provision of manufacture if the goods are labelled or relabelled and includes the declaration or alteration of retail sale price to render the products marketable to the consumers. Based upon the same, proceedings were initiated against the respondents resulting in passing of an order by
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Weights and Measures (Packaged Commodities) Rules. Therefore, it is presumed that the MRP was put on these imported goods before clearance of the same from customs. However, all these are mere presumptions and the same can t be applied to confiscate the goods. As mentioned above, even if MRP stickers were removed, this process does not lead to alteration of MRP, as it has not been alleged that new revised MRP was affixed. Supply of Price list has also not been correlated with revision of MRP. Thus, the criteria of manufacture under Section 2(f) of the Central Excise Act has not been fulfilled to claim dutiability and hence liability to confiscation of the goods. 5. As against the above findings of Commissioner (Appeals), Revenue is in appe
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