Section 4A valuation governs notified electric fans; wholesale supply to Government departments does not justify Section 4 assessment.

Electric fans covered by a valid notification under Section 4A of the Central Excise Act, 1944 must be valued under Section 4A alone, because once goods are specified for retail sale price-based valuation, Section 4 cannot be invoked. Supply to Government departments under a DGS&D rate contract or in wholesale does not change that position for notified goods. On that basis, valuation under Section 4 was unsustainable, the demands were set aside, and consequential relief followed.

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Issues: Whether electric fans covered by the notification issued under Section 4A of the Central Excise Act, 1944 were liable to be assessed under Section 4 of that Act merely because they were supplied to Government departments against a DGS&D rate contract, and whether the resulting demands were sustainable.

Analysis: Section 4A applies where the Central Government has issued a notification specifying the goods for valuation on the basis of retail sale price. Once goods are covered by such a notification, sub-section (2) of Section 4A governs valuation and Section 4 does not apply to those goods. The fact that the supply was made in wholesale or to Government departments was held to be irrelevant for goods notified under Section 4A. Electric fans were covered at Serial No. 55 of Notification No. 05/2001 (N.T.) dated 01-03-2001, and the assessable value was therefore required to be determined under Section 4A alone.

Conclusion: The demands founded on valuation under Section 4 were held unsustainable, the impugned orders were set aside, and both appeals were allowed with consequential relief.

Ratio Decidendi: For goods specified by a valid notification under Section 4A of the Central Excise Act, 1944, valuation must be made under Section 4A and Section 4 cannot be invoked merely because the sale is not to an ultimate consumer.

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