MRP-based excise valuation applies to air-conditioners supplied under DGS&D arrangements, not transaction value under Section 4.

Air-conditioners cleared under negotiated DGS&D supply arrangements remained assessable under Section 4A of the Central Excise Act, 1944 because the goods were notified for MRP-based valuation and were required to bear an MRP under the packaged commodities regime. The DGS&D arrangement governed only price and contractual terms; the actual supplies were made directly to the concerned departments for individual units, so the transaction was not a bulk sale to DGS&D. On those facts, the contrary decision cited was inapplicable, as it involved a different transactional structure and bulk clearance. Section 4A therefore applied, and valuation under Section 4 was not justified.

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Issues: Whether the assessee's air-conditioners, affixed with MRP and cleared pursuant to negotiated rates and supply arrangements with DGS&D, were liable to be assessed under Section 4A of the Central Excise Act, 1944 instead of Section 4 of that Act.

Analysis: The goods were notified for MRP-based assessment and were required to bear MRP under the packaged commodities regime. The arrangement with DGS&D governed only the price and contractual conditions; the actual supplies were made directly to the concerned departments in respect of individual air-conditioners. On the facts, the transaction was not a bulk sale to DGS&D and the reasoning in the cited contrary decision was inapplicable because that case involved bulk clearance and a different transactional structure.

Conclusion: Section 4A of the Central Excise Act, 1944 applied, and assessment under Section 4 was not justified.

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