Section 4A valuation overrides market price for notified footwear, with retail sale price and abatement controlling excise assessment.

Footwear specifically notified under Section 4A of the Central Excise Act had to be valued only on retail sale price less the prescribed abatement, because Section 4A overrides Section 4 through its non obstante clause. The expression "value" in sub-heading 6401.12 was therefore not confined to ordinary market price under Section 4. The later substitution of "retail sale price" was treated as confirming that construction. On that basis, the duty demand and penalty were held unsustainable, and the goods in question attracted nil duty under the notified valuation method.

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Issues: Whether the value of footwear covered by Heading 64.01 for the relevant period was to be determined under Section 4 of the Central Excise Act, 1944 or under Section 4A of the Central Excise Act, 1944, and whether the expression "value" in sub-heading 6401.12 meant market price or the deemed retail sale price under Section 4A.

Analysis: Duty under Section 3 of the Central Excise Act, 1944 is levied at the rates set out in the Central Excise Tariff Act, 1985, but valuation of notified goods is governed by Section 4A of the Central Excise Act, 1944. Once footwear was specified under Section 4A by the relevant notifications, the assessable value had to be determined only on the basis of retail sale price less the prescribed abatement. The non obstante clause in Section 4A gave it overriding effect over Section 4. The contention that "value" in sub-heading 6401.12 meant the ordinary market price or value under Section 4 was rejected, and the subsequent amendment substituting "retail sale price" was treated as confirming, rather than defeating, that construction.

Conclusion: The duty demand and penalty were unsustainable, and the valuation of the footwear had to be made under Section 4A on the basis of retail sale price with abatement, resulting in nil duty for the goods in question.

Ratio Decidendi: Where goods are specifically notified under Section 4A of the Central Excise Act, 1944, their value for excise purposes must be determined exclusively under Section 4A and that provision overrides Section 4 by reason of its non obstante clause.

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