Section 4A valuation of combination packs must follow individual MRPs for each notified constituent good.

Section 4A valuation applies only to goods specifically notified for retail sale price-based assessment, and the notified abatement must be linked to the MRP declared on each such good. For combination packs containing dissimilar excisable goods, each separately notified under section 4A and each carrying its own MRP and abatement structure, the combined MRP of the pack cannot replace the individual MRPs. A composite pack of dissimilar items has no separate identity for central excise valuation, so assessment must be done item-wise on the respective MRPs. The contrary demand was therefore unsustainable.

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Issues: Whether combination packs of dissimilar excisable goods, each individually notified under section 4A, are to be valued on the combined MRP of the pack or on the individual MRPs of the constituent goods.

Analysis: Section 4A applies only to goods specifically notified by the Central Government and contemplates valuation with reference to the retail sale price declared on the goods, after allowing the notified abatement. Where a combination pack contains dissimilar goods, each separately notified under section 4A and each having its own MRP and abatement structure, the combined MRP of the pack cannot be substituted for the individual MRPs. A combination package of dissimilar items has no separate identity for central excise valuation, and the non obstante nature of section 4A requires strict construction. The decision followed the settled position that such goods are assessable item-wise on their respective MRPs.

Conclusion: The combination packs had to be valued on the individual MRPs of the constituent goods, not on the combined MRP of the pack, and the demand based on the contrary approach was not sustainable.

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