In Brief
The respondent, a chewing tobacco manufacturer, packed 33 small pouches (6 gms each) and one larger pouch (15 gms) into poly packs marked with an MRP of Rs. 36. These poly packs were then placed 100 to a bag (HDPE bags) and sold to distributors and dealers. The Revenue demanded excise duty under Section 4A of the Central Excise Act, arguing the poly packs were retail packages. The Supreme Court held that since the respondent sold HDPE bags (not individual poly packs) to intermediaries, these wholesale packages did not require price declaration under the Weights and Measures Rules. Therefore, Section 4A did not apply. The appeal was dismissed.
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