The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), upheld the assessment of Countervailing Duty (CVD) on basis of retail sale price for prepared glues and other prepared adhesives.
The appellant, M/s. Anabond Limited, had imported various items such as Rust Penetrant, Chain Lubricant, Mega Check Cleaner, Adhesive, Mega Check Penetrant, Paint Remover, out of which the first four items were assessed to CVD on the basis of retail sale price and the balance two items were assessed on the basis of transaction value. With regard to the fourth item, namely, adhesive (Power Bond A1), which was classified under CTH 3506 1000, the assessment of CVD was done on the basis of retail sale price and not on the transaction value.
It appears that subsequently, the appellant ascertained that they were not liable to pay CVD based on retail sale price for the said product falling under CTH 3506 1000. As such, they preferred an appeal before the lower appellate authority, who rejected the appeal of the appellant. Aggrieved by the above, the appellant preferred the above captioned appeal before the forum.
M. Karthikeyan, Counsel appeared for the appellant, has advanced the argument that for the purpose of levying CVD on the basis of retail sale price declared on the package, the fundamental requirement is that the goods should be notified under Section 4A(1) of the Central Excise Act.
The Notification No. 49/2008- C.E.(N.T.) issued under Section 4A(1) only notifies goods with the description “Prepared glues and other prepared adhesives, not elsewhere specified or included”, covered under clause (a) above and falling under heading 3506 at Sl. No. 43.
It is his contention that since the imported goods in question fall under clause (b) above and are classified under Tariff Item No. 3506 1000, which is not in dispute, the same are not notified goods under Sl. No. 43 of the Notification No. 49/2008-C.E.(N.T.) and the imported adhesive would not attract levy of CVD based on the retail sale price declared on the package and hence, the goods are required to be assessed only on the basis of the transaction value.
A Division Bench of the Tribunal comprising Vasa Seshagiri Rao, Technical Member and P Dinesha, Judicial Member observed that “As the imported goods are classified under CTH 3506 1000, which is not disputed and which covers products put up for retail sale whose net weight does not exceed 1 kg., should be treated as included for the purpose of the impugned Notification No. 49/2008-C.E.(N.T.) dated 24.12.2008 for subjecting the goods to retail sale price based levy.”
“In view of the above, we do not find any reason to differ with the decision of the lower appellate authority on the issue of including the imported adhesives for the purpose of collection of CVD on the basis of retail sale price in terms of Notification No. 49/2008-C.E.(N.T.) dated 24.12.2008 issued under Section 4A of the Central Excise Act, 1944” the Bench noted.
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