MRP-based valuation under excise law fails where industrial-use yeast is exempt from mandatory retail price declaration.

Section 4A of the Central Excise Act, 1944 applies only where packaged goods are statutorily required to declare retail sale price under the Standards of Weights and Measures Act, 1976 or the Packaged Commodities Rules. Yeast cleared in packs marked for industrial use only and specially made for the bakery industry fell within the exemption under Rule 34, so no mandatory MRP declaration existed. In the absence of that statutory obligation, valuation could not be made under section 4A, even though the goods were otherwise notified. The goods were therefore assessable under section 4, and any demand founded on section 4A was not sustainable.

---

---

Issues: Whether yeast cleared in packing marked for industrial use only and specially made for bakery industry was required to bear MRP and be assessed under section 4A of the Central Excise Act, 1944, or whether valuation had to be under section 4 of that Act.

Analysis: Section 4A applies only where the goods are required, under the Standards of Weights and Measures Act, 1976 or the rules made thereunder, to declare retail sale price on the package. The packaging and use of the goods were found to place them within the exemption from MRP declaration under Rule 34 of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977. The earlier administrative determination and the High Court's view supported the conclusion that no statutory obligation existed to affix MRP. Once the mandatory MRP requirement was absent, section 4A could not govern valuation, even though the goods were otherwise notified.

Conclusion: The goods were not required to bear MRP and were assessable under section 4 of the Central Excise Act, 1944, not under section 4A. The demand based on section 4A was unsustainable.

---