Section 4A valuation for defence-supplied soaps justified waiver of pre-deposit and stay of coercive recovery.

A valuation dispute under Section 4A of the Central Excise Act concerned soaps supplied exclusively to the Ministry of Defence and marked not for retail sale. On the record, the goods were not intended for retail trade, so the appellants showed a strong prima facie case that declaration of maximum retail price was not required. Total waiver of pre-deposit of duty and penalty was granted, and coercive recovery was stayed pending disposal of the appeal.

---

---

Issues: Whether total waiver of pre-deposit and protection against coercive recovery should be granted where the dispute concerned valuation under Section 4A for soaps supplied exclusively to the Ministry of Defence and not meant for retail sale.

Analysis: The appeal raised a valuation dispute on whether the goods were liable to assessment under Section 4A of the Central Excise Act, 1944. The record indicated that the soaps were supplied to the Ministry of Defence, were not intended for retail sale, and were specifically labelled as not for retail sale. On that basis, the appellants made out a strong prima facie case that the requirement of declaring maximum retail price was not attracted.

Conclusion: Total waiver of the pre-deposit of duty and penalty was granted, and coercive recovery was stayed until disposal of the appeal.

---