Whilst I only have your photo to go on, I still stick to my original thought and that's for a number of reasons:
I know that a coloured label exists (I have enough early TD / Gong and Oldfield with them) but it was not introduced until 1974, a year after that LP was issued and withdrawn. Look at the difference between a 1974 Virgin label and the one on your copy of 'Faust Tapes' and you'll see huge differences in the dragons' colouring and the gradient of the sky. You'll also notice on your version that the blue of the sky, apart from being uniform and flat, does not meet the outline of the girls' hair which looks like someone's tried to make it look like a 'proper' Virgin label. Also, given the LP was a budget release, it's unlikely to they'd use a coloured label, never mind make it the first release to use one.
If you also look at VC502 (Gong, Camembert Electrique) and VC503 (Front Line) both were released after the colour label was introduced and both of them also use the B&W label exclusively.
There's a useful link here about Virgin label variations and your label isn't there although I acknowledge it's possible it doesn't have an exhaustive list of label variations.
http://www.cvinyl.com/labelguides/virgin.php
Anyway, whatever version you have, it's still a great album and even though it was a compilation of sorts, I prefer it to 'IV'.
