Retail sale price valuation under excise law follows the package price for the relevant region, not a higher regional declaration.

Section 4A valuation under the Central Excise Act is governed by the retail sale price declared on the relevant package, subject to the statutory abatement. Explanation 2 must be read consistently with the charging provision and applies to multiple retail sale prices declared on the same package, not to different packages printed for different regions. The later substituted Explanation 2 clarified that where different regional prices appear on different packages, each price governs valuation for the area to which it relates. A declaration form under rule 173C(2A) could not enlarge the charging provision or displace the statutory valuation basis, so the local price on the package controlled.

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Issues: Whether Explanation 2 to section 4A of the Central Excise Act, 1944 required excise duty to be computed on the highest retail sale price declared for different regions in the declaration form, or on the retail sale price printed on the package for the relevant region.

Analysis: Section 4A makes the retail sale price declared on the goods the basis of valuation, subject to abatement. Explanation 2 applies where more than one retail sale price is declared on the excisable goods, and it must be read consistently with the main provision. Properly construed, the explanation refers to multiple retail prices declared on the same package, not to different prices appearing on different packages meant for different regions. The later substituted Explanation 2, introduced by section 95 of the Finance Act, 2000, clarified that where different retail sale prices are declared on different packages for different areas, each such price governs valuation for the area to which it relates. The prescribed declaration form under rule 173C(2A) could not enlarge the charging provision or alter the statutory basis of valuation.

Conclusion: The higher retail sale price declared for another region could not be applied to goods sold in a different region where only the local retail sale price was printed on the package; valuation had to follow the price declared on the relevant package, in favour of the assessee.

Ratio Decidendi: An explanation to a valuation provision must be construed in harmony with the charging section, and a procedural declaration form cannot override or expand the statutory basis of tax liability.

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