Packaged commodities exemption under Rule 34(b) kept multi-piece packages outside Section 4A valuation and within Section 4.

Rule 34(b) of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 was applied to multi-piece packages whose aggregate net content did not exceed the prescribed limit, so the packages were exempt from mandatory MRP declaration. On that basis, Section 4A of the Central Excise Act, 1944 was not attracted because valuation on retail sale price basis depends on a statutory requirement to declare retail sale price on the package. The Board circular relied on by Revenue could not override the plain wording of the rule, and the earlier view in the assessee's own matter was followed. Valuation under Section 4 therefore remained applicable.

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Issues: Whether multi-piece packages containing an aggregate quantity of less than 10 grams or 10 millilitres were exempt under Rule 34(b) of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977, and consequently assessable under Section 4 of the Central Excise Act, 1944 rather than under Section 4A of that Act.

Analysis: Section 4A applies only where the goods are specified for valuation on retail sale price basis and there is a statutory requirement to declare the retail sale price on the package. The relevant packaged commodities rules apply to commodities in packaged form, and Rule 34(b) exempts any package containing a commodity if the net weight or measure does not exceed the prescribed limit and the goods are sold by weight or measure. The language of Rule 34(b) did not justify reading in a restriction excluding multi-piece packages. The Board circular relied on by the Revenue did not displace the plain language of the rule. The earlier orders in the assessee's own case were also consistent with the view that where the combined net content of the multi-piece package was below the prescribed limit, declaration of MRP was not obligatory and Section 4A was not attracted.

Conclusion: The exemption under Rule 34(b) applied to the impugned multi-piece packages, and they were not liable to assessment under Section 4A; valuation under Section 4 of the Central Excise Act, 1944 was correct.

Final Conclusion: The Revenue's challenge failed, and the assessee retained the benefit of assessment on the basis of assessable value under Section 4.

Ratio Decidendi: Where the aggregate net content of a multi-piece package is within the Rule 34(b) limit and the package is not statutorily required to bear MRP under the packaged commodities rules, Section 4A of the Central Excise Act, 1944 does not apply.

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