Retail-sale valuation under Section 4A fails where packaged goods are not intended for retail sale and exempted by commodity rules.

Talcum powder packed in 20 gram containers and supplied for free distribution with soap was held not to satisfy the conditions for retail-sale-based valuation under Section 4A of the Central Excise Act, 1944. Because the goods were neither intended for retail sale nor actually sold in retail, and the packages fell within the exemption in Rule 34(1)(b) read with Rule 3 of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977, valuation under Section 4A was unavailable. The article states that assessment had to proceed under Section 4 instead.

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Issues: Whether the impugned talcum powder, though notified under Section 4A of the Central Excise Act, 1944, was liable to valuation under Section 4A on the basis of retail sale price with abatement, or whether it was assessable under Section 4 of that Act because it was not intended for retail sale and the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 did not apply.

Analysis: The goods were manufactured in 20 gram containers and supplied to another company for free distribution along with soap. On those facts, the goods were neither intended for retail sale nor actually sold in retail. The packages were also within the category exempted by Rule 34(1)(b) of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977, read with Rule 3. Mere notification of the product under Section 4A did not make that provision applicable where the statutory conditions for retail-sale-based valuation were absent.

Conclusion: Valuation under Section 4A was not available, and assessment under Section 4 of the Central Excise Act, 1944 was .

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