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Regarding charging of excise duty with reference to Maximum Retail Price
Circular
No. 411 dated 31st July 1998
I
am directed to say that doubts have been raised as regards charging of excise
duty with reference to maximum retail price under section 4A of Central Excise
Act, 1944 in cases where MRP is not required to be affixed on packings, as a
statutory requirement under the Standards Weights and Measures Act or any other
Law for the time being in force, even though some manufacturers may voluntarily
be affixing the MRP on such packings.
2.
Instructions were issued by the Board's vide letter F.No. 341/64/97- TRU
dated 11th August 1997 clarifying that Sub-section (1) of Section 4A applies
only when the MRP is required to be indicated under the provisions of Standards
Weights and Measures Act, 1976 or under any other Jaw for the time being in
force. In other words, Section 4A applies only when there is statutory
requirement of affixing the MAP. Accordingly, in case a manufacturer voluntarily
affixes MRP which is not statutorily required then the excise duty on goods in
such packings shall not be charged on the basis of Section 4A of the Central
Excise Act, 1944.
3.
The Commissioners of Central Excise may however require the manufacturers
to intimate and declare to the jurisdictional Assistant Commissioner of Central
Excise as regards the packings on which MRP is not required to be affixed
statutorily may be asked to indicate full description including weight etc. of
such packings. It may be examined and ensured by the Assistant Commissioner that
the packings are such that they are exempt under the provisions of the Standards
Weights and Measures Act and the rules made thereunder. Such packings will be
assessed to excise duty under the provisions of Section 4 of Central Excise Act,
1944.
4.
The matter has been re-examined and it has been decided to reiterate the
above instruction contained in Board's letter F.No. 341/64/97. TRU dated 11th
August, 1997. Accordingly, the instructions dated 30.4.98 regarding Shampoo
sachets communicated to Chief Commissioner, Vadodara and some assessees may be
treated to have been withdrawn. Such cases may also be decided in accordance
with the instructions contained in this Circular.
5.
All pending disputes/assessments on the issue may be settled in the light
of these guidelines.
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