2018 (6) TMI 785 – CESTAT NEW DELHI – TMI – Valuation – removal of MRP stickers – Revenue 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 – labelling/relabelling not done – Held that:- There is no 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.
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In the absence of any allegation of fixation or alteration of MRP, it cannot be said that, manufacture has taken plac
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re importing home appliances under the brand name FRENDZ and FAMOUS and were clearing the same on payment of customs duty on the basis of the MRP stickers available on the said goods. 3. Subsequent investigations 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 decla
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goes on the premise that all the imported goods were required to bear labels/stickers of MRP in terms of Consumer Goods (Mandatory Printing of Cost of Production and Maximum Retail Price) Act, 2006 and 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(
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