Per Archana Wadhwa : The appellants are engaged in the manufacture of crisp wafer finger covered with milk chocolate under brand name 'Kitkat' falling under chapter 19 of CETA, 1985. Inasmuch as the said product is a specified item under the provisions of Section 4A of Central Excise Act, 1944, the duty on the said chocolate was being paid by the appellant in terms of the said Section 4A based upon the retail sale price, after claiming deductions on account of abatements. There is no dispute about the assessable value of the Kitkat sold in the market in retail.

2. The dispute relates to the sale of Kitkat to M/s. Pepsico India Holdings Ltd. under a contract where the agreed price of the same packet was Rs. 4.80. The said product purchased by M/s. Pepsico India Holdings Ltd. was meant for free supply of the same along with one bottle of Pepsi of 1.5 litre as a sales promotion scheme. The appellant cleared the disputed goods after payment of duty at Rs. 4.80 per Kitkat in terms of Section 4, after filing due declarations. However, the department entertained a view that the appellant was required to declare the retail sale price of the Kitkat in question under the provisions of St