ORDER
M.V. Ravindran, Member (J)
1. This stay application is directed against the Order-in-Appeal dated 11-8-2006. Since the issued involved in this case is in a narrow compass, we waive the pre-deposit of amount of duty and penalty involved in this case and take up appeal itself for disposal.
2. The relevant facts that arise for consideration are that the appellants are manufacturer of Ceramic Glazed Tiles and these tiles are subject to duty under the provisions of Section 4A of the Central Excise Act, 1944. It is the Revenue’s contention that the appellant has suppressed the assessable value by not adding the additional amount of insurance charges collected by them from their purchasers. Show cause notice was issued for demand of duty and for imposition of penalty. The adjudicating authority confirmed the demand after granting abatement of 15% on the value to be added and also imposed penalty under Section 11 AC and demanded interest under Section 11AB of the Central Excise Act, 1944. On an appeal against the said order, the Commissioner (Appeals) also concurred with the view of the adjudicating authority and upheld the Order-in-Original.
3. None appeared on behalf of the appellant nor there is any request for adjournment.
4. Heard the learned DR and perused the case records. We find that in this case the provisions of Section 4A are made applicable for the goods manufactured by the appellant. Provisions of Section 4A is read:
Section 4A. Valuation of excisable goods with reference to retail sale price.
(1) The Central Government may, by notification in the Official Gazette, specify any goods, in relation to which it is required, under the provisions of the Standards of Weights and Measures Act, 1976 (60 of 1976) or the Rules made hereunder or under any other law for the time being in force, to declare on the package thereof the retail sale price of such goods, to which the provisions of sub-section (2) shall apply.
(2) Where the goods specified under sub-section (1) are excisable goods and are chargeable to duty of excise with reference to value, then, notwithstanding anything contained in Section 4, such value shall be deemed to be the retail sale price declared on such goods less such amount of abatement, if any, from such retail sale price as the Central Government may allow by notification in the Official Gazette.
(3) The Central Government may, for the purpose of allowing any abatement under Sub-section (2), take into account the amount of duty of excise, sales tax and other taxes, if any, payable on such goods.
(4) Where any goods specified under sub-section (1) are excisable goods and the manufacturer –
(a) removes such goods from the place of manufacture, without declaring the retail sale price of such goods on the packages or declares a retail sale price which is not the retail sale price as required to be declared under the provisions of the Act, Rules or other law as referred to in Sub-section (1); or
(b) tampers with, obliterates or alters the retail sail price declared on the package of such goods after their removal from the place of manufacture,
then, such goods shall be liable to confiscation and the retail sale price of such goods shall be ascertained in the prescribed manner and such price shall be deemed to be the retail sale price for the purposes of this section.
It can be noticed from the above reproduced section that the assessable value of goods would be MRP declared on the goods less amount of abatement as may be prescribed. The provisions of Section 4A are very clear inasmuch that, once the goods are covered under Section 4A for ascertainment of correct assessable value, no recourse has to be undertaken to Central Excise Valuation Rules, 2000. Any addition or deletion from the value is not contemplated under Section 4A. In the absence of any such provision, adding the additional amount of insurance recovered would be going beyond the statute.
5. Since in this case, it is undisputed that the goods are covered under the Section 4A, we are of the view that the impugned order is not sustainable. Accordingly, in view of the facts and circumstances as mentioned above, the impugned order is set aside and appeal is allowed with consequential relief, if any.
(Dictated and pronounced in the Court)