{"id":158373,"date":"2005-10-03T00:00:00","date_gmt":"2005-10-02T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/godrej-industries-ltd-vs-commissioner-of-central-excise-on-3-october-2005"},"modified":"2015-09-08T22:01:22","modified_gmt":"2015-09-08T16:31:22","slug":"godrej-industries-ltd-vs-commissioner-of-central-excise-on-3-october-2005","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/godrej-industries-ltd-vs-commissioner-of-central-excise-on-3-october-2005","title":{"rendered":"Godrej Industries Ltd. vs Commissioner Of Central Excise on 3 October, 2005"},"content":{"rendered":"<div class=\"docsource_main\">Customs, Excise and Gold Tribunal &#8211; Mumbai<\/div>\n<div class=\"doc_title\">Godrej Industries Ltd. vs Commissioner Of Central Excise on 3 October, 2005<\/div>\n<div class=\"doc_citations\">Equivalent citations: 2005 (192) ELT 378 Tri Mumbai<\/div>\n<div class=\"doc_bench\">Bench: A Wadhwa, S T S.S.<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p>S.S. Sekhon, Member (T)<\/p>\n<p>1. The appellants are engaged in the manufacture of soap falling under Heading 3401.19 of the Central Excise Tariff Act, 1985. They were to discharge the duties under Section 4A of the Central Excise Act, 1944 &amp; have complied with the same. On or around April 1999, they introduced a scheme wherein one cake of Cinthol International Soap was marketed as free on purchase of two cakes of similar brand of soap. The individual soaps were packed\/wrapped to give individually and thereafter to give to conform to what is known and understood as multi piece package. The packaging of the three soaps was done in such a manner that no individual cake of soap could be separated from multi piece package without damaging or tearing the wrapper of individual soap cakes. Multi piece package bear on it the term &#8220;CINTHOL INTERNATIONAL MILLENIUM OFFER, BUY 2, GET 1 FREE&#8221; A paper wrapper also had a declaration [A PACK OF 3 (3X75 GMS) &amp; the MRP of Rs. 27\/-(INCLUSIVE OF ALL TAXES]&#8221;. The wrapper of each soap in addition had a MRP clearly struck out with a declaration &#8220;Individual cake not intended for retail sale branded thereto&#8221; and each wrapper also indicates the scheme &#8220;BUY 2 GET ONE FREE&#8221; followed by &#8220;A PACK OF 3 (3X75 GMS) &#8211; MRP Rs. 27\/-(INCLUSIVE OF ALL TAXES). The present appeal relates to such multi piece package of 3 soaps. The department issued a show cause cum demand notice on 24-2-2000 alleging that the goods cleared were under valued by not declaring a proper value on the individual cakes under which they were removed and for such failure payment of Central Excise Duty as required, duty demand of Rs. 37,98,439\/- was made for the period August 99 to Nov 99 along with the penalties proposed under the Central Excise Law.\n<\/p>\n<p>2. The lower authority adjudicated the matter and confirmed the demand of Rs. 48,66,918\/- and imposed a penalty of Rs. 10,00,0007- by issuing a common order on this notice as well as on another notice dated 23-3-2000 on same issue. After hearing the appellants CCE (Appeals) modified the order as regards the penalty &amp; interest by setting aside the penalty imposed as well as the interest demanded and confirmed the duty demands as proposed on this multi piece package of 3 soaps. The duty demand of Rs. 35,454\/- on the 2 extra soaps was not confirmed. Hence these appeals by assessee and Revenue. They are being decided by this common order.\n<\/p>\n<p>3. After hearing both sides it is found &#8211;\n<\/p>\n<p>(a) Advocate for the appellant accepts that the sum of Rs. 35,4547- is payable in spite of soap sold to in each case at the unique price of Rs. 1,350\/- from the instruction of the section. The said amount is paid by the appellants. Since it is not contested we confirm this payment along with interest as applicable under the law.\n<\/p>\n<p>(b) As regards the duty demand on the multi piece package consisting of 3 soap cakes, in view of the position now settled by Board Circular No. 673\/64\/2002\/CX, dated 28-10-2002, we find no reason to confirm the demands in excess of the amounts already discharged in this case at the MRP declared for the multi piece package.\n<\/p>\n<p>(c) Since the major part of the demand which is on multi piece package in this case &amp; that is not to be upheld, we find no reason to impose the penalty in this case.\n<\/p>\n<p>4. In this view of the findings, Revenue appeal as regards penalty is to be rejected. As regards interest on the demand now not contested the same is allowed. The assessee&#8217;s appeal as regards setting aside the demand on the multi piece package is allowed after setting aside the demand.\n<\/p>\n<p>5. Appeals disposed off herein above.\n<\/p>\n<p>(Pronounced in Court)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Customs, Excise and Gold Tribunal &#8211; Mumbai Godrej Industries Ltd. vs Commissioner Of Central Excise on 3 October, 2005 Equivalent citations: 2005 (192) ELT 378 Tri Mumbai Bench: A Wadhwa, S T S.S. ORDER S.S. Sekhon, Member (T) 1. The appellants are engaged in the manufacture of soap falling under Heading 3401.19 of the Central [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-158373","post","type-post","status-publish","format-standard","hentry","category-judgements"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Godrej Industries Ltd. vs Commissioner Of Central Excise on 3 October, 2005 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/godrej-industries-ltd-vs-commissioner-of-central-excise-on-3-october-2005\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Godrej Industries Ltd. vs Commissioner Of Central Excise on 3 October, 2005 - Free Judgements of Supreme Court &amp; 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