Multi-piece sachet packs valued under Section 4, not Section 4A, where Rule 34(b) exemption applies.

Shampoo sachets packed in multi-piece cartons were held to fall within Rule 34(b) of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977, so valuation was under Section 4 of the Central Excise Act, 1944 and not Section 4A. The Tribunal followed the settled position in Urison Cosmetics, Varnica Herbs, and the Supreme Court's approval in Kraftech Products that such sachet packs do not require retail sale price-based assessment. It also held that a departmental circular cannot override the statutory rules or the effect of Rule 12. The assessee's position was upheld and the Revenue's challenge failed.

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Issues: Whether shampoo sachets packed in multi-piece cartons were liable to valuation under Section 4A of the Central Excise Act, 1944, or were eligible to be assessed under Section 4 read with Rule 34(b) of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977, and whether the departmental circular could override that position.

Analysis: The dispute turned on whether the product packed in strips of sachets formed a multi-piece package requiring declaration of retail sale price so as to attract Section 4A. The Tribunal applied the settled position that such sachet packs fall within the exemption under Rule 34(b) and do not require valuation under Section 4A. It noted that the Larger Bench decision in Urison Cosmetics, the later Tribunal decision in Varnica Herbs, and the Supreme Court's approval in Kraftech Products had already held that similar sachet packs are assessable under Section 4 and not Section 4A. The circular relied upon by the Revenue was also held not to displace the statutory scheme, as it was inconsistent with the Rules and ignored the effect of Rule 12.

Conclusion: The goods were not assessable under Section 4A and the Revenue's challenge failed.

Final Conclusion: The impugned order in favour of the assessee was upheld and the Revenue's appeal was rejected.

Ratio Decidendi: Multi-piece sachet packages eligible for exemption under Rule 34(b) of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 are to be valued under Section 4 of the Central Excise Act, 1944 and not under Section 4A; a departmental circular contrary to the statutory rules cannot alter that result.

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