Packaged cement with MRP declaration falls under Section 4A valuation regardless of supply to institutional buyers.

Cement cleared in packaged form with maximum retail price declared was treated as goods required to bear retail sale price for valuation under Section 4A, even when supplied to an institutional buyer. The legal metrology clarification supporting MRP declaration on such packages was considered decisive, and the nature of the buyer was not treated as determinative. On that basis, the duty entry linked to packaged goods bearing MRP under Notification No. 4/2006-CE was applied rather than the lower alternative entry.

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Issues: Whether cement cleared in packaged form to an institutional buyer, with maximum retail price declared on the packages pursuant to the competent legal metrology authority's clarification, was liable to duty under Sl. No. 1A of Notification No. 4/2006-CE dated 01.03.2006 rather than Sl. No. 1C.

Analysis: The packages were cleared bearing the retail price declaration, and the competent authority under the standards of weights and measures regime had clarified that cement packages should declare maximum retail price in the prescribed manner even for such supplies. On that basis, the nature of the buyer by itself was not decisive. The factual matrix was also treated as distinguishable from the earlier tribunal decision relied on by the assessee, and support was drawn from the principle that for valuation under Section 4A, the material consideration is whether the goods are sold in packages and are required to bear the retail sale price, not the nature of the buyer. The cited legal metrology clarifications and the affirmed tribunal view in a comparable matter reinforced the conclusion that the exemption entry applicable was the one linked to packaged goods bearing MRP.

Conclusion: The goods were correctly classifiable for duty purposes under Sl. No. 1A of Notification No. 4/2006-CE dated 01.03.2006, and the department's appeal failed.

Final Conclusion: The order allowing assessment under the lower duty entry was upheld, and the revenue challenge was rejected.

Ratio Decidendi: Where packaged goods are required by law to bear maximum retail price, duty valuation applies under Section 4A regardless of whether the supply is made to a retail consumer or an institutional buyer.

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