Section 4A valuation applies to MRP-packaged footwear even for institutional buyers, defeating assessment under Section 4.

Footwear specified for valuation under Section 4A of the Central Excise Act, 1944 remains assessable under that provision when cleared in packages bearing MRP and not exempt under Rule 34 of the Packaged Commodities Rules. The fact that the goods were supplied to institutional buyers at contract price did not displace the statutory requirement to declare retail sale price, so valuation under Section 4A applied and valuation under Section 4 was not sustainable. The Revenue's challenge failed, and the orders setting aside the duty demand were upheld.

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Issues: (i) Whether footwear supplied to institutional buyers in packages with MRP affixed could be valued under Section 4A of the Central Excise Act, 1944 instead of Section 4 of that Act.

Analysis: Footwear is a commodity specified for valuation under Section 4A. The packages carried MRP and were not exempted under Rule 34 of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977. The valuation scheme under Section 4A applies where the goods are covered by the relevant weights and measures regime and the package bears the requisite retail price declaration. The Court also followed the principle that a package supplied to an intermediary or institutional buyer may still fall within the statutory framework attracting Section 4A when the legal obligation to declare retail sale price exists and the exemption under Rule 34 is unavailable.

Conclusion: Section 4A was rightly applied and the demand based on Section 4 of the Act was not sustainable. The issue is decided in favour of the assessee.

Final Conclusion: The Revenue's challenge to the valuation adopted by the assessee failed, and the orders setting aside the duty demand were upheld.

Ratio Decidendi: Where a commodity specified under Section 4A is cleared in packages bearing MRP and is not exempt under the packaged commodities rules, valuation under Section 4A applies even if the goods are supplied to institutional buyers on contract price.

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