The provisions of MRP based valuation under Central Excise are not applicable where the package is Exempt under rule 34 of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 - Valuation to be done u/s 4 -

Rule 34 of the Standard Weights and Measures (Packaged Commodities) Rules 1977, Exempts the following goods from its scope:

34. Exemption in respect of certain packages:-

Nothing contained in these rules shall apply to any package containing a commodity if:-

(a) ***

(b) the net weight or measure -of the commodity is ten gram or ten millilitre or less, if sold by weight or measure; 

(c) ***

Provided that the declaration in respect of maximum retail price and net quantity shall be declared on packages containing 10 g to 20 g or 10 ml to 20 ml.

(d) any package containing fast food items packed by restaurant/hotel and the like.

(e) it contains scheduled formulations and non-scheduled formulations covered under the Drugs (Price Control) Order, 1995 made under Section 3 of the Essential Commodities Act 1955 (10 of 1955).

(f) agricultural farm produce in packages of above 50kg.

See:

Section 4A of the Central Excise Act, 1944

Commissioner Of Central Excise, Rajkot Versus M/S Makson Confectionery Pvt. Ltd. (2010 -Tmi - 77501 - Supreme Court)

Commissioner Of Central Excise Versus Central Arecanut And Cocoa Marketing & Process Co-Operative Limited (2010 -Tmi - 77500 - Supreme Court)

Commissioner Of Central Excise Versus M/S. Kraftech Products Inc (2008 -Tmi - 3484 - Supreme Court)

Central Arecanut & Cocoa Marketing & Processing Co-Op. Ltd. Versus C.C.E. Manglore (2008 -Tmi - 4475 - Cstat Chennai)

 

MRP based valuation rule exceptions prevent MRP valuation for packages exempted under Rule 34; valuation follows Section 4. MRP based valuation under Central Excise does not apply where a package falls within Rule 34 exemptions of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977; in such cases valuation is to be made under Section 4. Rule 34 exempts packages with net quantity of ten grams or ten millilitres or less, requires declaration for 10-20 g/ml packages, and exempts fast food packages by restaurants, formulations under the Drugs (Price Control) Order, 1995, and agricultural produce in packages above fifty kilograms.