Industrial-use declaration under packaged commodity rules supported valuation under section 4 and interim stay of recovery.

A package declaration stating that film was specially packed for exclusive use by the printing and publishing industry as raw material brought the goods within rule 34(a) of the Packaged Commodity Rules. On that prima facie basis, the article discussed valuation under section 4 of the Central Excise Act rather than section 4A, and noted that routing through depots, dealers and retailers did not by itself negate the declared industrial use. The interim result was waiver of pre-deposit and stay of recovery, based on a strong prima facie case on valuation and exemption, with the appeal to be decided on merits.

---

---

Issues: Whether the goods were entitled to valuation under section 4 of the Central Excise Act, 1944 rather than section 4A, having regard to the exemption in rule 34 of the Standards of Weights and Measures (Packaged Commodity) Rules, 1977, and whether the appellant had made out a prima facie case for waiver of pre-deposit and stay of recovery.

Analysis: The package bore a declaration that the film was specially packed for the exclusive use of the printing and publishing industry as a raw material, which brought the case within clause (a) of rule 34. The objection that the product was routed through depots, dealers and retailers did not by itself establish that the ultimate use was not as an industrial raw material. On a prima facie view, the material supported assessment under section 4 rather than under section 4A, and the demand therefore did not warrant insistence on pre-deposit at the interim stage.

Conclusion: The appellant was held entitled to waiver of pre-deposit and stay of recovery.

Final Conclusion: Interim protection was granted on the basis that the assessee had shown a strong prima facie case on valuation and exemption, leaving the appeal to be heard on merits.

Ratio Decidendi: Where the package declaration shows exclusive industrial use as raw material and the contrary objection does not dislodge that prima facie position, valuation under section 4A may be stayed in favour of valuation under section 4 for interim purposes.

---