Section 4A valuation fails where small sachets are exempt from mandatory MRP declaration under packaged commodities rules.

Section 4A valuation applies only where packaged goods are subject to a statutory requirement to declare retail sale price. Small sachets or pouches containing 10 g/ml or less were exempt under Rule 34 of the Packaged Commodities Rules, so the mere voluntary affixation of MRP did not trigger MRP-based assessment. The analysis follows the Larger Bench view that such exempt small packs are not liable to valuation under Section 4A. Valuation therefore had to proceed under Section 4 read with the valuation rules rather than on an MRP basis.

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Issues: Whether the goods packed in sachets/pouches of 10 g/ml or less, though falling under the notified tariff chapters and bearing MRP, were assessable under Section 4A of the Central Excise Act, 1944 or whether valuation had to be under Section 4 read with the valuation rules because Rule 34 of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 exempted such packages from the statutory requirement of declaring MRP.

Analysis: Section 4A applies only where the goods are covered by a statutory requirement to declare retail sale price. The relevant board clarification also states that voluntary affixation of MRP does not attract Section 4A if there is no statutory mandate. Although the products were notified for MRP-based valuation, Rule 34 of the packaged commodities rules exempted packages containing 10 grams or 10 millilitres or less from the requirement of declaration of MRP. The goods in question fell within that exemption, and the Larger Bench view had already held that such small cosmetic packs are not liable to be assessed under Section 4A.

Conclusion: Section 4A was inapplicable to the disputed sachets/pouches, and valuation was not required to be made on MRP basis.

Ratio Decidendi: Section 4A of the Central Excise Act applies only when the law requires declaration of retail sale price on the package; where a statutory exemption removes that requirement, MRP-based valuation cannot be invoked.

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