Rule 34 exemption for small packaged goods supported waiver of pre-deposit and stay of recovery in valuation dispute.

Packages containing a commodity in net weight of ten grams or less were held, prima facie, to fall within the Rule 34 exemption from retail sale price declaration, so valuation under Section 4A was not immediately attracted. Applying the principle that the commodity is to be assessed by weight rather than by the number of pouches, the Tribunal found a prima facie case for the applicants. On that basis, pre-deposit was waived and recovery stayed pending the appeal.

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Issues: Whether the applicants had made out a prima facie case for waiver of pre-deposit by showing that the goods were exempt from retail sale price declaration under Rule 34 and therefore not assessable under Section 4A.

Analysis: The exemption under Rule 34 applies to a package containing a commodity where the net weight is ten grams or less. The dispute concerned spit tobacco contained in pouches of 10 grams or less. Relying on the principle that such commodity is to be treated by weight and not by number, the Tribunal held that the applicant had made out a prima facie case that the goods fell within the Rule 34 exemption. On that basis, the demand under Section 4A was not required to be secured at the stay stage.

Conclusion: The applicants succeeded in obtaining waiver of pre-deposit and stay of recovery pending appeal.

Final Conclusion: Interim relief was granted because the goods were found, prima facie, to be covered by the packaged commodities exemption and outside the immediate reach of Section 4A valuation.

Ratio Decidendi: Where the commodity, not the outer pouch count, determines the mode of sale and the package contains ten grams or less, the Rule 34 exemption can prima facie exclude assessment under retail sale price valuation.

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