MRP-based assessment under section 4A requires sale for ultimate consumers, and later notifications cannot operate retrospectively.

MRP-based assessment under section 4A applies only where imported goods are required to bear retail price for sale to ultimate consumers; where the goods were sold in wholesale packages to wholesalers, retailers or dealers, the section 4A mechanism was not attracted and no MRP-based valuation could be applied on that footing. A notification issued later could not be applied to an import and out-of-charge event that occurred before its date, absent express retrospective intent. On that reasoning, the duty demand, interest and penalties were not sustainable.

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Issues: (i) Whether the imported goods, having been sold in wholesale packages to intermediaries and not to ultimate consumers, were liable to MRP-based assessment under section 4A; (ii) Whether Notification No. 2/2006-C.E. (N.T.) could be applied to an import made before its issuance.

Issue (i): Whether the imported goods, having been sold in wholesale packages to intermediaries and not to ultimate consumers, were liable to MRP-based assessment under section 4A.

Analysis: The goods were shown to have been sold to wholesalers, retailers, or dealers in wholesale packages. On that factual basis, the requirement to affix MRP/RSP applicable to retail sale to ultimate consumers did not arise. The legal framework under section 4A, read with the packaging rules, was therefore not attracted to the manner in which the goods were sold.

Conclusion: The goods were not liable to MRP-based assessment on this ground.

Issue (ii): Whether Notification No. 2/2006-C.E. (N.T.) could be applied to an import made before its issuance.

Analysis: The relevant import and out-of-charge event occurred before the notification date. As there was no express retrospective operation, the notification could not govern the disputed import for MRP-based assessment.

Conclusion: The notification was inapplicable to the case.

Final Conclusion: The duty demand, interest, and penalties could not be sustained, and the appeals succeeded.

Ratio Decidendi: MRP-based assessment under section 4A applies only where the goods are required to bear retail price for sale to ultimate consumers, and a subsequent notification cannot be applied retrospectively in the absence of express retrospective intent.

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