MRP-based excise assessment applies to packaged switchgear where commodity rules do not exclude the goods.

Section 4A of the Central Excise Act, 1944 applies only where goods are required to bear an MRP under the packaged commodity rules. Because Rule 2A excludes packages over 25 kg or 25 litres and goods meant for industrial or institutional consumers, the dispute turned on whether the switchgear fell within that regime. The article states that the goods were cleared through dealers in packaged form, sold by number rather than by weight, and repacked and labelled in the factory, which supported MRP-based assessment. The cited precedents were found inapposite on their facts. The goods were therefore correctly assessed under Section 4A on an MRP basis, and the challenge to the demand failed.

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Issues: Whether switchgear weighing more than 25 kg each, sold through dealers in packaged condition, was required to be assessed under Section 4A of the Central Excise Act, 1944 on MRP basis or under Section 4 of that Act.

Analysis: Section 4A applies only to goods required to bear an MRP under the relevant packaged commodity rules. Rule 2A of the Standards of Weights and Measures (Packaged Commodity) Rules, 1977 excludes packages containing more than 25 kg or 25 litres and goods meant for industrial or institutional consumers. On the facts, the switchgear was not sold by weight but by number, and the goods were cleared through dealers in packaged form rather than directly to industrial or institutional consumers. The goods were therefore not covered by the exemption from MRP declaration. The record also showed repacking and labelling in the factory, supporting the conclusion that the goods were liable to duty under Section 4A. The cited precedents did not assist the appellant because they arose on different facts or were not final on the point.

Conclusion: The goods were correctly assessed under Section 4A on MRP basis, and the challenge to the demand failed.

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