The appeals challenge the judgment dated 7th November 2008 by the Customs, Excise, and Service Tax Appellate Tribunal, addressing whether the goods sold by the respondent-assessee are covered by Section 4 or Section 4A of the Central Excise Act, 1944. The issue arose from show cause notices issued to the respondent-assessee, alleging that the poly packs of chewing tobacco were group packages intended for retail sale, thus liable under Section 4A. The Commissioner upheld this view, but the Tribunal reversed it, leading to the present appeals. The Supreme Court analyzed the applicability of retail sale definitions under the Standards of Weight & Measures (Packaged Commodity) Rules, 1977, and concluded that the HDPE bags sold by the respondent were wholesale packages, not subject to Section 4A of the Excise Act. The appeals were dismissed.

Background

1. Tribunal's Judgment and the Issue: The appeals question the Tribunal's decision on whether the goods sold by the respondent-assessee fall under Section 4 or Section 4A of the Central Excise Act, 1944.

Show Cause Notices and Allegations

2. Details of Show Cause Notices: Show cause notices issued to the respondent alleged that poly packs containing small pouches of chewing tobacco were group packages intended for retail sale.

Respondent's Reply

3. Respondent's Contention: The respondent claimed they were selling HDPE bags containing multiple poly packs to distributors, not directly to consumers, arguing these were wholesale packages.

Commissioner's Order

4. Commissioner's Findings: The Commissioner upheld the demand, interpreting the poly packs as retail packages based on their labeling, and rejected the respondent's contentions.

Tribunal's Decision

5. Tribunal's Reversal: The Tribunal disagreed with the Commissioner, referencing a Supreme Court decision, and set aside the Commissioner's order.

Submissions by Appellant

6. Appellant's Arguments: The appellant argued that the goods were group packages for retail sale and should be assessed under Section 4A, emphasizing the weight of the packages.

Submissions by Respondent

7. Respondent's Defense: The respondent maintained that their packaging was not for retail sale but wholesale, falling outside the scope of Section 4A.

Consideration of Submissions

8. Analysis of Facts: The Court examined the facts, particularly the nature of the packaging and sales process, and the definitions under the Standards of Weights and Measure Rules.

Legal Framework

9. Relevant Legal Provisions: Section 4A of the Central Excise Act and various rules under the Standards of Weights and Measure (Packaged Commodity) Rules, 1977, were scrutinized.

Findings

10. Findings on Retail Sale: The Court found that the respondent’s HDPE bags were intended for wholesale, not retail sale, based on the facts and definitions.

Conclusion

11. Court's Conclusion: The Supreme Court agreed with the Tribunal's conclusion that Section 4A of the Excise Act did not apply, dismissing the appeals.