MRP valuation applies only when retail sale price disclosure is statutorily required; bulk non-retail pesticide supplies fall under transaction value.

Section 4A valuation applies only where notified goods are statutorily required to declare retail sale price on the package. Pesticides cleared in 100 ml packs for free distribution, without a retail sale price and not intended for retail sale, were therefore not assessable on MRP basis under Section 4A. A binding departmental circular also directed that bulk supplies for non-retail consumption remain assessable under Section 4 on transaction value, and the Revenue could not disregard that circular while the assessee relied on it. The goods were accordingly valued under Section 4, and the demand, penalty and interest did not survive.

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Issues: Whether pesticides notified under Section 4A of the Central Excise Act, 1944 but cleared in 100 ml packs in bulk for free distribution, without a retail sale price and not intended for retail sale, were assessable under Section 4A on maximum retail price basis or under Section 4 on transaction value.

Analysis: Section 4A applies only when goods are both notified and are required under the Standards of Weights and Measures law to declare retail sale price on the package. The Board's Circular dated 28.02.2002 clarified that where goods are supplied in bulk for non-retail consumption, including bulk supplies to hotels, restaurants, DOT or MTNL, valuation remains under Section 4. The circular was still in force, and the Revenue could not dispute its binding effect while the assessee relied on it. The contrary Tribunal decisions were not applied to defeat the circular in the Revenue's hands.

Conclusion: The bulk supplies of pesticides to M/s. Mahyco Monsanto Biotech (India) Pvt. Ltd. were not liable to assessment under Section 4A and had to be valued under Section 4 on transaction value. The demand, penalty and interest could not survive.

Ratio Decidendi: Goods notified under Section 4A are assessable on MRP basis only when the package is one for which declaration of retail sale price is statutorily required; where the goods are not intended for retail sale and a binding departmental circular directs valuation under Section 4 for bulk supplies, the Revenue is bound by that circular.

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