Section 4A valuation applies to standard MRP-labeled packages even when supplied to institutional buyers.

Ceramic tiles cleared in standard retail packages bearing MRP declarations remained assessable under Section 4A of the Central Excise Act, 1944 because the packages were not marked exclusively for industrial or institutional use and were not declared as not meant for retail sale. The relevant test was whether the goods were excisable, sold in packages, required by law to declare retail price, and notified for Section 4A; the identity of the buyer did not displace that treatment where those conditions were met. The assessment under Section 4A was therefore correct, and the demand under Section 4 was unsustainable.

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Issues: Whether ceramic tiles cleared in standard packages with MRP declared to contractors, schools, colleges, hospitals, hotels, builders and similar buyers were assessable under Section 4A of the Central Excise Act, 1944 or under Section 4 of the Central Excise Act, 1944.

Analysis: The packages supplied to the so-called institutional buyers were found to be the same standard packages used for retail sale and they bore MRP declarations. There was no declaration on the packages that they were meant exclusively for industrial or institutional use or not meant for retail sale. The authorities implementing the packaged commodities regime had clarified that only packages specifically marked for industrial or institutional consumers and not meant for retail sale are excluded from the MRP declaration requirement. The applicable test under Section 4A is whether the goods are excisable, sold in packages, required by law to declare retail price on the package, and notified by the Central Government; the nature of the purchaser is not where these conditions are satisfied.

Conclusion: The clearances were correctly assessed under Section 4A of the Central Excise Act, 1944, and the demand raised under Section 4 of the Central Excise Act, 1944 was unsustainable.

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