MRP-based valuation is not applicable to products sold in bulk to industries
MRP-based valuation is governed by Section 4A of the Central Excise Act, 1944. The primary requirement attracting MRP-based valuation of goods under excise is that the goods should be notified under Section 4A of the Act and should be covered within the purview of the Standards of Weights & Measures (Packaged Commodities) Rules, 1977. These rules do not apply to packaged commodities that are meant for sale to industrial/institutional consumers, who purchase the commodities for using the products in their industry. Sale of bulk quantities of your product, not intended for sale in retail, to industrial buyers would be outside the purview of the Standards of Weights & Measures (Packaged Commodities) Rules, 1977 and, therefore, would not attract MRP-based valuation for the purpose of payment of excise duty.
We are a medium-sized enterprise engaged in import of apparels. During the course of import, we pay the applicable customs duty. Also, we wish to avail the benefit of SAD refund on trading of apparels. We are not directly engaged in trading of these imported goods and the sales are made by