MRP-based excise valuation applies to packaged refrigerators supplied to a customer, despite institutional supply claims.

Refrigerators cleared in packaged form with MRP declared on them were treated as specified goods assessable under Section 4A of the Central Excise Act, 1944 on MRP basis rather than under Section 4 on transaction value. The Tribunal applied the Supreme Court ruling in Jayanti Food Processing Pvt. Ltd. and noted that supply to a particular customer or for institutional use did not by itself exclude such goods from Section 4A. Rule 34 of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 did not displace that valuation merely because the goods were manufactured for Coca-Cola and its dealers. The Revenue's challenge to MRP-based assessment therefore failed.

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Issues: Whether the refrigerators cleared by the assessee for supply to Coca-Cola and its dealers were assessable under Section 4A of the Central Excise Act, 1944 on MRP basis or under Section 4 of that Act on transaction value, and whether Rule 34 of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 excluded such valuation.

Analysis: The refrigerators were sold in packaged form with MRP declared on them and were covered by the category of specified goods for which Section 4A valuation applied. The Tribunal noted that the controversy was no longer res integra in view of the Supreme Court decision in Jayanti Food Processing Pvt. Ltd., which held that similar refrigerators supplied under contracts to bottling companies remained liable to valuation under Section 4A and that Rule 34 did not apply merely because the goods were manufactured for a particular customer or for institutional supply. On that binding authority, the absence of open-market retail sale did not by itself take the goods out of Section 4A.

Conclusion: The goods were correctly assessable under Section 4A of the Central Excise Act, 1944 on MRP basis, and the Revenue's challenge to that valuation failed.

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