Industrial-use adhesive packages valued on transaction value where MRP-based assessment exemption was not available.

Glues and adhesives supplied to industrial consumers in packages marked for industrial use were treated as outside MRP-based valuation. Because the record did not show retail sale or any requirement to declare retail sale price under the Standards of Weights and Measures law, the exemption from assessment on MRP basis was unavailable. Valuation therefore remained on transaction value under Section 4 rather than Section 4A of the Central Excise Act, 1944. The demand rejecting MRP assessment was upheld and the appeal failed.

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Issues: Whether the goods were liable to assessment under Section 4A of the Central Excise Act, 1944 on the basis of MRP, or under Section 4 on transaction value, having regard to their clearance to industrial consumers and the applicability of the exemption for packages meant for industrial use.

Analysis: The goods were found to be glues and adhesives falling under Chapter 35 of the Central Excise Tariff Act, 1985, and the record showed that they were supplied to industrial consumers. The packages were marked for industrial use, and there was no material to show retail sale or that the goods were required to declare retail sale price under the Standards of Weights and Measures law. On that basis, the exemption from MRP-based assessment was held to be unavailable, and the proper basis of valuation remained transaction value under Section 4.

Conclusion: The demand based on rejection of MRP assessment was upheld and the appeal failed, in favour of Revenue.

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