Area-wise retail sale price governs excise valuation; confiscation, redemption fine, and penalty were set aside for lack of contrary evidence.

Where excisable goods carry different area-wise retail sale prices, valuation under Section 4A of the Central Excise Act must follow the retail sale price applicable to the relevant area, and confiscation cannot be sustained on a contrary basis without evidence discrediting that declaration. The Revenue failed to show that the video cassette players were fully manufactured, especially when the assessee had already informed the department that the units were incomplete. On the colour television sets, the record itself showed area-wise marked prices and differential duty payment on that basis. Confiscation, redemption fine, and penalty were therefore set aside.

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Issues: Whether the confiscation of the seized colour television sets and video cassette players, along with the consequential redemption fine and penalty, was sustainable where different area-wise retail sale prices were declared and the goods were alleged to be either unaccounted or not fully manufactured.

Analysis: The Revenue did not produce material to show that the video cassette players were fully manufactured, and the appellants had already informed the department that the units were incomplete. The burden could not be shifted to the appellants in the absence of contrary evidence. As to the colour television sets, the record showed declaration of different retail sale prices for different areas, and the show cause notice itself referred to differential duty having been paid on the basis of area-wise marked prices. In such circumstances, the retail sale price applicable to the relevant area had to govern valuation under Section 4A of the Central Excise Act, and the contrary basis for confiscation was unsustainable.

Conclusion: The confiscation was not justified; the redemption fine and penalty were also not sustainable and were set aside in favour of the assessee.

Ratio Decidendi: Where excisable goods are marked with different retail sale prices for different areas, the applicable area-wise retail sale price governs valuation under Section 4A of the Central Excise Act, and confiscation cannot be sustained without evidence disproving the assessee's declared price basis or the claimed incompleteness of the goods.

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