Industrial consumer exemption under Legal Metrology failed where packets bore MRP stickers without the required declaration.

Goods cleared in individual packets bearing MRP stickers to an automobile manufacturer did not qualify as supplies to an industrial consumer because the packets lacked the mandatory declaration "not for retail sale" under the Legal Metrology Rules. Since section 4A of the Central Excise Act applies only where the package is one on which retail sale price declaration is legally required, the statutory conditions for exclusion were not met. Section 4A was therefore correctly invoked, and the duty demand and penalty were sustainable.

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Issues: Whether goods cleared in individual packets with MRP stickers to an automobile manufacturer qualified as sales to an industrial consumer so as to fall outside the Legal Metrology regime and escape assessment under section 4A of the Central Excise Act, 1944.

Analysis: Section 4A applies only where the package is one on which declaration of retail sale price is legally required. Under the amended definition of industrial consumer in the Legal Metrology Rules, the goods must be marked "not for retail sale" to qualify as supplies to an industrial consumer. Where the goods were cleared in individual packets bearing MRP stickers and lacked the mandatory declaration, they could not be treated as sales to industrial consumers. In such circumstances, the statutory conditions for exclusion from section 4A were not satisfied.

Conclusion: Section 4A was correctly applied and the duty demand and penalty were sustainable.

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