Disinfectant tablets in retail-packed measured doses fall under heading 3808 and attract MRP-based valuation under section 4A.

Disinfectant tablets used for sanitising water and packed in unit containers of measured doses were classifiable under heading 3808, because Section Note 2 to Section VI and the explanatory notes cover disinfectants put up in retail sale packing or measured doses even if the goods could otherwise fall in Chapter 29. The goods were also liable to MRP-based assessment under section 4A, since the packages bore MRP and were packed for retail sale; subsequent wholesale clearances did not exclude them from section 4A. The revenue challenge succeeded, and the classification and duty demand adopted by the department were restored.

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Issues: (i) Whether SDIC tablets were classifiable under heading 3808 as disinfectants or under heading 2933 as claimed by the assessee. (ii) Whether the goods were liable to duty on MRP-based valuation under section 4A.

Issue (i): Classification depended on the nature of the goods and the manner in which they were packed. The goods were found to be disinfectants used for sanitising water and were packed in unit containers containing 10, 20, 50 or 100 tablets. Section Note 2 to Section VI and the explanatory notes to heading 3808 apply to disinfectants put up in retail sale packing or measured doses, even where the unmixed product could otherwise fall in Chapter 29.

Conclusion: The goods were correctly classifiable under heading 3808 of the Central Excise Tariff.

Issue (ii): MRP-based assessment applies where the goods are required to declare MRP and are sold in retail packing. The evidence showed that the packages carried MRP and were packed for retail sale; the mere fact that further wholesale clearances were made did not take the goods out of section 4A.

Conclusion: The goods were liable to duty on MRP-based valuation under section 4A of the Central Excise Act.

Final Conclusion: The Revenue's challenge succeeded, the impugned appellate order was set aside, and the original duty demand and classification adopted by the department stood restored.

Ratio Decidendi: Disinfectant goods put up in retail sale packing or measured doses fall under heading 3808 notwithstanding that they may otherwise be chemically defined products of Chapter 29, and such retail-packed goods carrying MRP are assessable under section 4A.

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