Section 4A valuation fails for free-supply toothpaste without any sale element or retail sale price requirement.

Section 4A excise valuation applies only where the package is required under the weights and measures law to declare retail sale price and there is a sale element in the supply of that package. Where toothpaste is cleared for free distribution along with another product, without any sale of the package itself, the condition for printing or displaying retail sale price is not met and Section 4A cannot be invoked. On that basis, free-supply toothpaste packages fall outside the Section 4A valuation regime, and the related demand and penalties are unsustainable.

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Issues: Whether toothpaste cleared without MRP, for free distribution along with another product, could still be valued under Section 4A for excise duty purposes.

Analysis: The valuation under Section 4A applies only where the package is one that is required under the relevant weights and measures law and rules to declare the retail sale price. The controlling test is whether there is an element of sale in the package so as to attract the requirement of printing or displaying retail sale price under Rule 6(1)(f). Where the goods are supplied for free distribution and no sale of that package is involved, the statutory condition for invoking Section 4A is not satisfied.

Conclusion: The free-supply toothpaste packages were not liable to be assessed under Section 4A, and the demand and penalties could not stand.

Final Conclusion: The appeal succeeded and the assessee obtained consequential relief.

Ratio Decidendi: Section 4A valuation is available only when the package is required to bear a retail sale price and the package is involved in a sale transaction; goods supplied without any sale element fall outside that valuation regime.

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