MRP-based valuation under packaged commodities rules applies only to goods sold by weight or measure, not retail pieces.

MRP-based assessment under Section 4A of the Central Excise Act, 1944 applies only where packaged goods are actually sold by weight or measure within the exemption limit in Rule 34(1)(b) of the Standards of Weights & Measures (Packaged Commodities) Rules. Imported lipsticks declared, invoiced and priced as retail pieces, rather than by weight or measure, did not satisfy that condition. On those facts, the exemption was unavailable and valuation on the MRP basis was sustained. The note distinguishes precedents involving goods sold by measure or otherwise falling within the rule's limited exemption.

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Issues: Whether lipsticks imported and sold in pieces, with net weight of 2.2 gm each, were entitled to exemption under Rule 34(1)(b) of the Standards of Weights & Measures (Packaged Commodities) Rules and therefore not assessable to countervailing duty on the basis of MRP under Section 4A of the Central Excise Act, 1944.

Analysis: The exemption under Rule 34(1)(b) applies only where the commodity is sold by weight or measure and the net weight or measure is twenty grams or twenty millilitres or less. The imported lipsticks were declared in the Bill of Entry in numbers or pieces, were described as RSP items, and were invoiced and priced on a per-piece basis. On those facts, the goods were not sold by weight or measure. The authorities below were therefore right in holding that the exemption was unavailable and that assessment for countervailing duty had to proceed on the MRP basis. The cited precedents were distinguishable because they concerned goods sold by measure or packages otherwise falling within the exemption.

Conclusion: The exemption was not available to the lipsticks, and assessment under Section 4A of the Central Excise Act, 1944 was upheld.

Final Conclusion: The appeal failed because the imported lipsticks were treated as retail pieces and not as goods sold by weight or measure, so the MRP-based valuation stood confirmed.

Ratio Decidendi: An exemption from MRP-based assessment under the packaged commodities rules is available only when the goods are actually sold by weight or measure within the prescribed limit; goods sold in pieces do not qualify.

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