Industrial-use white cement sold in bulk was valued under ordinary excise rules, not retail price valuation.

White cement packed and marked specially for builders, and sold in bulk to builders for civil construction, was treated as goods intended for a specific industrial use rather than retail sale. On that basis, the goods fell outside the Packaged Commodities Rules under Rule 34 and were not liable to valuation under Section 4A of the Central Excise Act, 1944. The ordinary valuation provision under Section 4 applied instead, supported by the Board's circular and an earlier Tribunal ruling on a similar issue. The demand and penalties were therefore unsustainable, and the appeals were allowed.

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Issues: Whether white cement packed and marked specially for builders, and sold to builders for civil construction, was liable to valuation under Section 4A of the Central Excise Act, 1944 or under Section 4 of that Act.

Analysis: The goods were prominently marked as specially packed for builders and not for retail sale. On that footing, they were treated as intended for a particular industry and therefore outside the Packaged Commodities Rules under Rule 34. The Board's circular also supported assessment under Section 4 where goods were sold in bulk at contracted prices. The Tribunal's earlier decision on a similar issue was applied.

Conclusion: The builder-supplied white cement was not liable to valuation under Section 4A and was correctly assessed under Section 4; the demand and penalties were unsustainable.

Final Conclusion: The appeals were allowed and the impugned order was set aside.

Ratio Decidendi: Goods packed and clearly marked for a specific industrial use and sold in bulk at contracted prices, not for retail sale, are to be assessed under the ordinary valuation provision rather than on retail price basis.

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