MRP-based valuation applies only where retail price declaration is mandatory; free samples without MRP fall under section 4.

Free samples packed without a declared maximum retail price were not assessable under section 4A of the Central Excise Act, 1944 because MRP-based valuation applies only where the package is one on which retail sale price declaration is statutorily required. The packaged commodities rules were directed to packages intended for retail sale, and the record showed no legal obligation to print an MRP on the sample packets. In the absence of such mandatory declaration, the goods had to be valued under section 4, even if comparable sale packages carried an MRP.

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Issues: Whether free samples cleared in regular packages, on which no maximum retail price was printed, were liable to be assessed under section 4A of the Central Excise Act, 1944, or whether valuation under section 4 of the Act was applicable.

Analysis: The admitted position was that no MRP was printed on the free sample packets. The relevant packaged commodities rules applied the declaration requirements only to packages intended for retail sale, and the record showed that the samples were not covered by any statutory obligation to declare retail sale price. The State authorities had not objected to the non-declaration, and the Board's circulars relied upon supported the view that section 4A applies only where the package is one on which retail price declaration is statutorily required. In the absence of such requirement, the goods could not be brought to MRP-based assessment merely because similar sale packages carried an MRP.

Conclusion: Section 4A was not applicable to the free samples, and valuation under section 4 was ; the Revenue's challenge failed.

Ratio Decidendi: MRP-based assessment under section 4A applies only when the package is one on which declaration of retail sale price is statutorily required; where free samples are not subject to such mandatory declaration, they remain assessable under section 4.

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