Wholesale package treatment for 210 litre lubricant barrels excluded Section 4A valuation and supported interim relief.

210 litre barrels of lubricating oil were treated as wholesale packages under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977, so they were not required to bear retail sale price declarations. Because the condition for applying Section 4A of the Central Excise Act, 1944 was not established, the goods were not assessed on the footing of retail packages. On that basis, the assessee was found to have a strong prima facie case and unconditional stay was granted.

---

---

Issues: Whether 210 litre barrels of lubricating oil were liable to assessment under Section 4A of the Central Excise Act, 1944 on the footing that they were retail packages requiring declaration of retail sale price, or whether they were wholesale packages not attracting such requirement.

Analysis: The dispute turned on the character of the packages under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977. A clarification from the Controller of Legal Metrology stated that 210 litre barrels were to be treated as wholesale packages and were not required to bear MRP. In the absence of any requirement to declare retail sale price on the goods, the condition for application of Section 4A was not shown to exist. The appellant was therefore found to have a strong prima facie case for interim relief.

Conclusion: The barrels were not treated as retail packages for the purpose of Section 4A, and unconditional stay was granted in favour of the assessee.

---