MRP-based valuation applies to packaged excisable goods even when sold to institutional consumers

Packaged excisable aerated water supplied to institutional buyers remained assessable under Section 4A because the goods were cleared in packages bearing MRP, and no exempt category under the packaged commodities rules was shown. The institutional nature of the supply did not, by itself, displace the statutory scheme requiring retail-price-based valuation where MRP declaration applied. On that basis, the order treated valuation under Section 4A as correct and rejected the Revenue's attempt to apply Section 4.

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Issues: Whether aerated water supplied to institutional consumers, but bearing Maximum Retail Price on the package, was liable to valuation under Section 4A of the Central Excise Act, 1944 or under Section 4 of that Act.

Analysis: The decisive factors were that the goods were excisable, were cleared in packages, and admittedly carried MRP markings. The fact that the supplies were made to institutional buyers did not by itself take the goods outside the scheme of Section 4A when the statutory requirement to declare retail price existed and the packages were not shown to fall within the exempted category under the packaged commodities rules. The settled line of authority relied on in the order treated the presence of MRP on the package as attracting Section 4A, even where the ultimate supply was to an institutional or bulk purchaser, unless the package was clearly exempted from retail-price declaration.

Conclusion: Valuation was correctly done under Section 4A, not under Section 4, and the Revenue's challenge to that valuation failed.

Ratio Decidendi: Where packaged excisable goods bear MRP and are not shown to be exempt from retail-price declaration, assessment is governed by Section 4A notwithstanding supply to an institutional consumer.

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