MRP based valuation under Central Excise

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)