JAYANTI FOOD PROCESSING (P) LTD. versus COMMISSIONER OF CENTRAL EXCISE, RAJASTHAN

Citation: [2007] 9 S.C.R. 221 · Decided: 22-08-2007 · Supreme Court of India · Bench: ASHOK BHAN · Disposal: Disposed off

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Judgment (excerpt)

JAY ANTI FOOD PROCESSING (P) LTD. 
v. 
COMMISSIONER OF CENTRAL EXCISE, RAJASTHAN 
AUGUST 22, 2007 
[ASHOK BHAN AND V.S. SIRPURKAR, JJ.] 
A 
B 
Central Excise Act, 1944; Ss. 4, 4A/Standards of Weights and Measures 
Act, 1976/Standards of Weights and Measures (Packaged Commodities) Rules, 
1977; Rr. 2(o), 2(p), 2(q), 2(r), 2(w), 2(x), 3, 6, 15, 16, 17, 23, 24 & 34 and C 
Notification No.62511612002-CA dated 28.2.2002: 
Valuation of excisable goods-Declaration of retail sale price on 
packages-Ss.4 and 4A of 1944 Act and r.34 of 1977 Rules-Scope and 
ambit of-Held: In terms ofS.4A of 1944 Act, valuation of the excisable goods 
for the purpose of assessment could be made when the goods are being sold D 
in packages-In terms of provisions uls.4A(i) of 1994 Act and SWM Act! 
Rules, declaration of retail sale price on the package of goods is a requirement 
provided the goods are not covered under general exception ulr.34 of the 
Rules-If assessee is successful in showing that there is no such requirement 
under the Act and the Rules, then S.4A would not be applied-Nature of sale 
is of r.io consequence, the material consideration is that such sale of the E 
goods should be in package for displaying MRP on package-Jn the facts 
and circumstances of th'e present cases, MRP of the goods in question rightly 
declared by the assesset!S, and hence, valuation of goods should be made ul 
s.4A of the 1944 Act. 
Words and Phrases: 
'retail dealer~ 'retail package', 'retail sale', 'retail sale price', 'wholesale 
dealer', and 'wholesale package'-Meaning of in the context of the Standards 
of Weights and Measures (packaged Commodities) Rules, 1977. 
F 
Civil Appeal Nos.2819 of 2002 and 1738 of 2004 were filed by the G 
assessee challenging the order of the Tribunal pertaining to levy of excise 
duty on the sale of ice-creams and KITKA T Chocolates respectively; remaining 
13 appeals were filed by the Revenue challenging the order of the Tribunal in 
favour of the assessee regarding levy of excise duty on the sale of telephone 
n1 
H 
222 
SUPREME COURT REPORTS 
[2007} 9 S.C.R. 
A instruments, Refrigerators, bottled mineral water and electric filament lamps. 
The issue in all these appeals pertains to the interpretation of Sections 4 and 
4A of the Central Excise Act, 1944 and the provisions of Standards of Weights 
and Measures Act, 1976 as also the Standards of Weights and Measures 
(Packaged Commodities) Rules, 1977. · 
B 
The question which arose for determination in all these appeals was 
relating to the scope and ambit ofS.4A as added in the Central Excise Act, 
1944 by way of amendment by Act 26of1997. 
Allowing the appeals filed by the assessees and dismissing the appeals 
C filed by the Revenue, the Court 
HELD: 1.1. Sectio~ 4A was introduced in the Central Excise Act with 
the sole idea to end the uncertainty caused in determining the value of the 
go;,ds under Section 4 and then assessing the duty under that Section. Section 
4 was the basic formula for valuation of excisable goods and for the purposes 
D of charging of the duty of excise. It provided the mechanism of determining 
the valuation of the goods under various circumstances. 
(Para 2) (233-D, EJ 
1.2. Sub-section (1) of Section 4A of the Act was linked with the 
packages of the goods in respect of which the retail sale price was required 
E to be printed under the Standards of Weights and Measures Act and the Rules 
made thereunder or any other law. (Para 2) (233-F, G] 
l.3. After introduction of Section 4A in the Act, the nature of sale lost 
its relevancy in the sense that the valuation did not depend upon the factor 
whether it was a wholesale or sale in bulk or a retail sale. The whole section 
F covered the goods which were packaged and sold as such with the rider that 
such package had to have a retail price thereupon under the provisions of 
SWM Act, Rules made thereunder or under any other law. Thus, viewed from 
the plain language of the Section, where the goods are excisable goods and 
are packaged and further such packages are required to mention the price 
G thereof under the SWM Act, Rules made thereunder or under any other law 
and further such goods are specified by the Central Government. by 
notification in the Official Gazette, then the valuation of such goods would be 
on the basis of the retail sale price of such goods and only to such goods the 
provisions ofsub-section (2) of Section 4A of the Act shall apply. 
(Para 2) (233-H; 234-A-CJ 
H 
JA

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