Packaged cosmetics below the prescribed weight limit are outside Section 4A valuation, even when sold in multi-packs.

Section 4A of the Central Excise Act, 1944 does not apply to cosmetic multi-packs where each individual unit remains below the prescribed weight limit. The Tribunal applied the Larger Bench view that lipsticks and eyeliners under 10 ml continue to fall within the exemption under Rule 34 of the Standards of Weights and Measures (Packaged) Commodity Rules, even when sold in multi-packs. On that basis, the valuation mechanism under Section 4A was held inapplicable to the goods, and the issue was answered in favour of the assessee.

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Issues: Whether Section 4A of the Central Excise Act, 1944 applies to multi-packs of lipsticks and eyeliners when each individual pack contains less than the prescribed weight.

Analysis: The dispute concerned valuation of cosmetic multi-packs. The individual lipsticks and eyeliners were below 10 ml. The Tribunal applied the Larger Bench ruling that cosmetics of less than the prescribed weight, even when sold in multi-packs, fall within the exemption under Rule 34 of the Standards of Weights and Measures (Packaged) Commodity Rules and therefore do not attract Section 4A of the Central Excise Act, 1944.

Conclusion: Section 4A was held not to be attracted to the goods in question, and the issue was decided in favour of the assessee.

Ratio Decidendi: Where packaged cosmetics in multi-packs remain below the prescribed weight limit for the individual units, the valuation mechanism under Section 4A of the Central Excise Act, 1944 does not apply.

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