Retail-pack valuation under Section 4A applies to bulk ceramic tile supplies bearing MRP, not Section 4 valuation.

Ceramic tiles cleared in bulk to institutional or industrial buyers remained assessable under Section 4A of the Central Excise Act, 1944 where they were sold in standard retail packs bearing MRP. The presence of retail packaging and declared MRP meant the valuation rule for packaged commodities applied, and Rule 2A of the Packaged Commodities Rules did not exclude the goods merely because the supplies were in bulk. On those facts, the valuation could not be shifted to Section 4, and the demand, interest and penalty were unsustainable.

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Issues: Whether ceramic tiles cleared in bulk to institutional or industrial buyers, but packed and marked with MRP as retail packages, were assessable under Section 4A of the Central Excise Act, 1944 or under Section 4 of that Act.

Analysis: The goods were manufactured in a continuous process, packed in standard retail packages, and MRP was affixed on each package. The purchase orders and invoices showed that the supplies were of the same retail packs, even when the quantity was large, and there was no clear marking that the packages were meant only for industrial or institutional use. Rule 2A of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 applies only where the packages are meant for industrial or institutional consumers and are not required to bear MRP. Where the goods are sold in packages that attract declaration of retail price, valuation is governed by Section 4A. The facts were found to be on the same footing as the earlier decision relied upon, where bulk supply of retail packages did not take the goods out of Section 4A.

Conclusion: The goods remained assessable under Section 4A of the Central Excise Act, 1944, and not under Section 4. The demand, interest, and penalty were not sustainable.

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