Valuation of excisable goods with reference to retail sale price
Section 4A of the Central Excise Act, 1944 deals with valuation of excisable goods with reference to retail sale price. The Central Government may, by notification in the Official Gazette, specify any goods, in relation to which it is required, under the provisions of the [Legal Metrology Act, 2009 (1 of 2010) or the rules made thereunder or under any other law for the time being in force, to declare on the package t The Act came into force on 28 Feb 1944.
1[4A. Valuation of excisable goods with reference to retail sale price.-- (1) The Central Government may, by notification in the Official Gazette, specify any goods, in relation to which it is required, under the provisions of the 2[Legal Metrology Act, 2009 (1 of 2010) or the rules made thereunder or under any other law for the time being in force, to declare on the package thereof the retail sale price of such goods, to which the provisions of sub-section (2) shall apply.
(2) Where the goods specified under sub-section (1) are excisable goods and are chargeable to duty of excise with reference to value, then, notwithstanding anything contained in Section 4, such value shall be deemed to be the retail sale price declared on such goods less such amount of abatement, if any, from such retail sale price as the Central Government may allow by notification in the Official Gazette.
(3) The Central Government may, for the purpose of allowing any abatement under sub-section (2), take into account the amount of duty of excise, sales tax and other taxes, if any, payable on such goods.
3[(4) Where any goods specified under sub-section (1) are excisable goods and the manufacturer--
(a) removes such goods from the place of manufacture, without declaring the retail sale price of such goods on the packages or declares a retail sale price which is not the retail sale price as required to be declared under the provisions of the Act, rules or other law as referred to in sub-section (1); or
(b) tampers with, obliterates or alters the retail sale price declared on the package of such goods after their removal from the place of manufacture, then, such goods shall be liable to confiscation and the retail sale price of such goods shall be ascertained in the prescribed manner and such price shall be deemed to be the retail sale price for the purposes of this section.
4[Explanation 1.--For the purposes of this section, “retail sale price” means the maximum price at which the excisable goods in packaged form may be sold to the ultimate consumer and includes all taxes local or otherwise, freight, transport charges, commission payable to dealers, and all charges towards advertisement, delivery, packing, forwarding and the like, as the case may be, and the price is the sole consideration for such sale:
Provided that in case the provisions of the Act, rules or other law as referred to in sub-section (1) require to declare on the package, the retail sale price excluding any taxes, local or otherwise, the retail sale price shall be construed accordingly.
Explanation 2.-- For the purposes of this section,--
(a) where on the package of any excisable goods more than one retail sale price is declared, the maximum of such retail sale price shall be deemed to be the retail sale price;
(b) where the retail sale price, declared on packages of any excisable goods at the time of its clearance from the place of manufacture, is altered to increase the retail sale price, such altered retail sale price shall be deemed to be the retail sale price;
(c) where different retail sale prices are declared on different packages for the sale of any excisable goods in packaged form in different areas, each such retail sale price shall be the retail sale price for the purposes of valuation of the excisable goods intended to be sold in the area to which the retail sale price relates.]
Section 4A, The Central Excise Act, 1944 (Act 1 of 1944).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Jayanti Food Processing (p) LTD vs Commnr. of Central Excise, Rajasthan
Court's Decision & Legal Precedent
Section 4A of the Central Excise Act, 1944 applies to packaged excisable goods only when all five conditions are satisfied: (i) the goods are excisable; (ii) they are sold in packages; (iii) there is a statutory requirement under the Standards of Weights and Measures Act, 1976 or Rules made thereunder to declare the retail sale price on the package; (iv) the Central Government has specified such goods by notification in the Official Gazette; and (v) the valuation is based on the declared retail sale price less any abatement allowed by the Central Government. The nature of sale (bulk versus retail) is irrelevant to the application of Section 4A. What is determinative is whether there is a statutory requirement to print the maximum retail price on the specific packages being sold. Voluntary printing of MRP does not create a statutory requirement. Rule 34 of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 exempts packages specially packed for the exclusive use of any industry for servicing that industry, and this exemption is broadly interpreted to include supply of goods to industries for their operational use.
On this section: Valuation of excisable goods with reference to retail sale price. Court provided definitive interpretation that Section 4A applies only when: (i) goods are excisable; (ii) sold in packages; (iii) there is statutory requirement to declare price on package under SWM Act or Rules; (iv) Central Government has specified goods by notification; (v) valuation is based on declared retail sale price less abatement.
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Commissioner of Central Excisae Vapi vs Kraftech Products INC
Court's Decision & Legal Precedent
Rule 34(b) of the Standards of Weights and Measures (Packaged Commodity) Rules, 1977 applies to multi-piece packages containing commodities, and if the commodities are sold by weight or measure and the combined net weight of all pieces in the multi-piece package is 10 grams or less, the manufacturer is exempt from the requirement to declare Retail Maximum Price and is not subject to Section 4A of the Central Excise Act, 1944; instead, valuation under Section 4 applies. The combined weight should be considered for determining applicability of the Rule 34(b) exemption because Rule 2(j)'s illustration explicitly directs consideration of combined net weight for determining the applicability of the rules.
On this section: Provides for valuation based on Retail Sale Price (MRP) declared on packages; Court held this applies only when standards rules require MRP declaration, which may not apply to all packaged commodities
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… FACTUAL DETAILS 1. These appeals take exception to the judgment and order dated 7th November 2008 passed by the Customs, Excise and Service Tax Appellate Tribunal (for short, 'the Tribunal'). The issue involved, in short, is whether the goods sold by the respondent-assessee are covered by Section 4 or Section 4A of the Central Excise Act, 1944 (for short, 'The Excise Act'). The proceedings commenced based on the show cause notices issued to the respondent-assessee. The first show cause notice issued on 22nd April 2004, pertains to a brief period in April 2003. The second show cause notice is of 31st May 2004 ![]( page 0 …
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… which is not held to be a sale, be made to fall within the ambit of "retail sale" under the Legal Metrology Act, 2009/Standard Weights & Measures Act, 1976? > (iv) Whether in law, a transaction not attracting the provisions of Legal Metrology Act, 2009 / Standard Weights & Measures Act, 1976 be valued under Section 4A of the Central Excise Act, 1944? 4. The learned counsel for the Revenue, Mr.Srinivas, has raised preliminary objection about the maintainability of this appeal before this court in view of Section 35G read with section 35L(iii)(b) of the Central Excise Act (hereinafter referred to as "the Act"). The learned …
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… This is because the interpretation of the expression "input services" cannot fluctuate with the change in the definition of "value" in Section 4 of the Central Excise Act and cannot vary depending on whether the goods are levied to duty under Section 4A of the Central Excise Act or tariff value under Section 3(2) of the Central Excise Act or the product attract specific rate of duty." [9] Accordingly, it held that the definition of "input service" has to be interpreted in the light of requirements of business and it cannot be read restrictively so as to confine …
Made under this section, and citing it
19 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
- 01/2022-Central Excise (N.T.)Notification 2022
- No. 12/2016-Central Excise (N.T)Notification 2016
- No. 25/2016-Central Excise (N.T)Notification 2016
- Notification No. 50/2016- Central Excise (N.T.)Notification 2016
- No. 3/2015-Central Excise (N. T.)Notification 2015
- Notfn No 17/2014-CX (NT)Notification 2014
- Notfn No 01/2013-CX (NT)Notification 2013
- Notfn No 16/2013-CX (NT)Notification 2013
- Notfn No 07/2012-CX (NT)Notification 2012
- Notification No.30/2011-CE (N.T)Notification 2011
- Notification No. 19/2010- CE (N.T.)Notification 2010
- Notification No. 30/2010- CE (N.T.)Notification 2010
- Notification No.13/2002-CE (N.T)Notification 2002
- Notification No.05/2001-CE (N.T)Notification 2001
- Notification No.57/2001-CE (N.T)Notification 2001
- Notification No.60/2001-CE (N.T)Notification 2001
- Notification No.09/2000-CE (N.T)Notification 2000
- Notification No.43/2000-CE (N.T)Notification 2000
- Notification No.52/2000-CE (N.T)Notification 2000
Another 21 instruments name this provision in its title or its text without being made under it.
- 1082/03/2022-CXCircular 2022
- CENTRAL EXCISE RULES, 2017Rule 2017
- No. 19/2017 - Central Excise (N.T.)Notification 2017
- No. 23/2017 - Central Excise (N.T.)Notification 2017
- No. 13/2016- Central Excise (N.T.)Notification 2016
- No. 37/2016 - Central Excise (N.T.)Notification 2016
- Notification No.15/2011-CE (N.T)Notification 2011
- Notification No.16/2011-CE (N.T)Notification 2011
- Circular no.661/52/2002-CXCircular 2002
- Circular no.673/64/2002-CXCircular 2002
- Notification No.04/2002-CE (N.T)Notification 2002
- Notification No.05/2002-CE (N.T)Notification 2002
- circular no. 625/16/2002-CXCircular 2002
- circular no. 639/30/2002-CXCircular 2002
- circular no. 643/34/2002-CXCircular 2002
- Notification No.30/2001-CE (N.T)Notification 2001
- Notification No.31/2001-CE (N.T)Notification 2001
- Notification No.36/2001-CE (N.T)Notification 2001
- Notification No.48/2001-CE (N.T)Notification 2001
- Notification No.51/2001-CE (N.T)Notification 2001
- Circular no. 514/10/2000-CXCircular 2000
Questions about Section 4A
What have the courts held on Section 4A of the Central Excise Act?
Jayanti Food Processing (p) LTD vs Commnr. of Central Excise, Rajasthan (22 Aug 2007) is the leading judgment on this section among those set out below: Valuation of excisable goods with reference to retail sale price. Court provided definitive interpretation that Section 4A applies only when: (i) goods are excisable; (ii) sold in packages; (iii) there is statutory requirement to declare price on package under SWM Act or Rules; (iv) Central Government has specified goods by notification; (v) valuation is based on declared retail sale price less abatement. Another 1 judgment on this section is set out below, all of them from the Supreme Court. They run from 2007 to 2008.
How do I find court cases under Section 4A of the Central Excise Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Central Excise Act 1944 4A, section 4A Central Excise Act 1944, section 4A of the Central Excise Act. People searching for it also type section 4a central excise act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Jayanti Food Processing (p) LTD vs Commnr. of Central Excise, Rajasthan (22 Aug 2007).
What should I read with Section 4A of the Central Excise Act, and has it changed?
Its own text turns on section 4 (Valuation of excisable goods for purposes of charging of duty of excise), so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 19: most recently 01/2022-Central Excise (N.T.) (2022), then No. 12/2016-Central Excise (N.T) (2016), and 17 more.
When did Section 4A of the Central Excise Act come into force?
Section 4A of the Central Excise Act, cited as Central Excise Act 1944 4A, came into force on 28 Feb 1944, having been enacted on 24 Feb 1944. It is in force as at the date shown on this page.
Other sections of this Act
- 4. Valuation of excisable goods for purposes of charging of duty of excise1751 words
- 11A. Recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded1442 words
- 11B. Claim for refund of duty and interest, if any, paid on such duty1342 words
- 35B. Appeals to the Appellate Tribunal1302 words
- 32F. Procedure on receipt of an application under Section 32-E1167 words
- 11AC. Penalty for short-levy or non-levy of duty in certain cases1093 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.