TMI Blog2016 (9) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... f Act. – Held that: - to get benefit of exemption applicant need to satisfy two conditions of Notification No. 21/2012-Cus. namely declaration of the State of destination where goods are intended to be taken immediately after importation and declaration of His VAT registration No. or Sales Tax registration No. or Central Sales tax registration No., as the case may be in said State – the applicant satisfies both the conditions mentioned above. As the pre-packaged commodities in this case are covered by Chapter II of said Rules i.e. provisions applicable to packages intended for retail sale, the same should also satisfy all conditions regarding declarations to be made on every package, as per Rule 6 including sub-rule (e) regarding declari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... include three stages: a) Placement of order: At first, the applicant will place its order on the foreign supplier(s) and will inform the name and the quantity of the products it need. b) Importation: Upon placement of the order, the foreign supplier will export the products in pre-packaged form to the Applicant in India. c) In the meanwhile the consumers will place their order on the applicant. Once the product reaches the applicant, it will then supply the product to the consumers on the basis of their demand. In order to start its business activities in India, the applicant now proposes to import refrigeration and food services products such as chest freezers, professional refrigeration products, refrigerated displays, ice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , therefore, goods cannot be exempted from additional duty of Customs (SAD) levied under Section 3 (5) of the Customs Tariff Act. 4. Notification No. 21/2012-Cus dated 17.03.2012 inter-alia exempts all pre-packaged goods intended for retail sale in relation to which it is required under the provisions of the Legal Metrology Act, 2009 or the rules made there-under or under any other law for the time being in force, to declare on the package thereof the retail sale price (RSP) of such article, from whole of additional duty of Customs (SAD) levied under Section 3 (5) of the Customs Tariff Act, provided importer declares; I) The State of destination where goods are intended to be taken immediately after importation, whether for sale or di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to apply to i) packages of commodities containing quantity of more than 25 kg or 25 litre excluding cement and fertilizer sold in bags up-to 50 kg; and ii) packaged commodities meant for industrial consumers or institutional consumers. 8. Since Rule 3(ii) of P C Rules uses the terms industrial consumers or institutional consumers, therefore, definition of industrial consumer and institutional consumer needs to be examined. Definition of these 2 terms, as given in the P C Rules, 2011 is reproduced as under; Rule 2. Definitions In these rules, unless the context otherwise requires (bb) industrial consumer means the consumer who buys packaged commodities directly from the manufacturer for use by that industry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dustrial / institutional consumer provided packaged goods are bought by them directly from the manufacturer. In the case before us, prior to 14.05.2015, applicant did not buy the goods directly from the manufacturer but from the importer. Therefore, the provisions of Chapter II i.e. relating to packages intended for retail sale are applicable to the applicant. Further, w.e.f. 14.05.2015, Chapter II of PC Rules, 2011 is not to be applicable if packaged commodities are bought directly from the manufacturer or importer or wholesale dealer for use in that industry/institution and the package will be containing the declaration not for retail sale . In short, applicant would not fall under the definition of industrial / institutional consumer, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal is confirmed by the Hon ble Supreme Court and reported in 2015 (39) ELT A227. We are in agreement with the views of the Tribunal, which was primarily based on the clarification rendered by the authorities implementing Legal Metrology (Packaged Commodities) Rules, 2011. As the pre-packaged commodities in this case are covered by Chapter II of said Rules i.e. provisions applicable to packages intended for retail sale, the same should also satisfy all conditions regarding declarations to be made on every package, as per Rule 6 including sub-rule (e) regarding declaring the RSP of the package. As pre packaged goods to be imported would have declaration of RSP on them, this condition is also met. 11. In view of the above, it can be conc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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