Bulk toothbrush packs for free distribution were treated as non-retail packages, supporting valuation under section 4 for pre-deposit purposes.

Bulk toothbrush packs cleared for free distribution with toothpaste were treated as not being packages intended for retail sale under the Packaged Commodities Rules, so valuation for excise purposes was considered prima facie under section 4 rather than section 4A of the Central Excise Act, 1944. On that material, the Tribunal accepted the assessee's reliance on Supreme Court authority and held the valuation issue in its favour only for the purpose of pre-deposit, with the demand not required to be secured at that stage.

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Issues: Whether the tooth brushes cleared in bulk packs for free distribution along with toothpaste were to be valued under section 4A of the Central Excise Act, 1944 or under section 4 of that Act for the purpose of considering waiver of pre-deposit.

Analysis: The goods were cleared in bulk packs, not as individually packed articles intended for retail sale, and the recipient used them for free distribution with toothpaste. On the material before it, the package was not one intended for retail sale within the ambit of Rules 2A and 3 of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977. The Tribunal treated the Supreme Court decision relied upon as supporting the assessee's case on the prima facie issue of valuation.

Conclusion: The issue was held prima facie in favour of the assessee, and the demand was not required to be secured by pre-deposit at that stage.

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