Section 4A valuation requires a legal MRP declaration on the package; exempt shampoo sachets fall under Section 4 instead.

Section 4A valuation applies only where the goods are specified and the law requires declaration of the retail sale price on the package. Because shampoo sachets of 10 ml or less were not required under the packaged commodities rules to bear MRP, mere voluntary affixation of MRP by the manufacturer did not attract Section 4A. The sachets therefore had to be assessed under Section 4, and the MRP-based demand was unsustainable. The applicable principle is that statutory liability to declare retail sale price is a prerequisite for Section 4A assessment.

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Issues: Whether shampoo sachets of 10 ml or less, not required to bear MRP under the applicable packaged commodities rules, were assessable under Section 4 of the Central Excise Act, 1944 or under Section 4A of that Act.

Analysis: The valuation scheme under Section 4A applies only where the goods are specified and there is a statutory requirement to declare the retail sale price on the package. Where the goods are otherwise exempt from such declaration under the packaged commodities rules, mere affixation of MRP by the manufacturer does not by itself attract Section 4A. The cited precedent and the Board circular supported the view that, in the absence of a legal requirement to declare MRP, valuation must proceed under Section 4. The sachets in question fell within that category and were not liable to MRP-based assessment.

Conclusion: The assessment under Section 4 was held to be correct and the demand under Section 4A was unsustainable.

Ratio Decidendi: Section 4A valuation is permissible only when the law requires declaration of retail sale price on the package; if no such statutory requirement exists, the goods must be valued under Section 4.

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