Industrial-use packaged goods outside MRP-based valuation; assessable under normal excise valuation rules instead of section 4A.

Packages marked as specially packed for exclusive industrial use as raw material fall within the exemption in Rule 34 of the Packaged Commodities Rules where the marking clearly shows they are not intended for retail display or retail sale. On those facts, MRP-based assessment under section 4A of the Central Excise Act does not apply because the goods are outside the retail packaging regime. The correct basis of valuation is therefore section 4, not section 4A, when no evidence shows that the goods were meant for retail sale.

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Issues: Whether goods specially packed and marked for exclusive use of industries as raw material were liable to be assessed under section 4A of the Central Excise Act, 1944, or under section 4 of that Act.

Analysis: Rule 34 of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 exempts packages where the marking unambiguously shows that they are specially packed for exclusive industrial use as raw material or for servicing industries. The packages in question were marked as specially packed for exclusive use of industries as raw material and not intended for retail display or retail sale. No evidence was produced to show that the goods were meant for retail sale. In such circumstances, the basis for MRP-linked assessment under section 4A did not apply.

Conclusion: The goods were not liable to be assessed under section 4A of the Central Excise Act, 1944 and were assessable under section 4 of that Act.

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