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Issues:
Applicability of exemption under clause (i) of entry 225 of Notification 5/99 to imported colour television receivers; Contravention of Standards of Weight and Measures (Packaged Commodities) Rules, 1977. Analysis: 1. The primary issue in this case was the applicability of the exemption under clause (i) of entry 225 of Notification 5/99 to imported colour television receivers. The appellant imported these goods and claimed the benefit of the exemption for determining the additional duty of customs payable. However, the Deputy Commissioner of Customs denied the exemption, stating that the retail price declared on the package should be from the factory of production in India, not from any other country of exportation. The Deputy Commissioner alleged that the importer used a colorable device to instruct suppliers to affix the MRP for India on the goods to avail of the benefit. The Deputy Commissioner also linked the application of the exemption to Section 4A of the Central Excise Act, emphasizing that the goods must bear an MRP, which can only be satisfied by locally produced goods. The Tribunal, in its judgment, analyzed previous rulings and concluded that the appellant should be entitled to the exemption if the television sets were imagined to be manufactured in India, as there would be no objection to the grant of exemption. 2. The Tribunal referred to the judgment in Thermax Pvt. Ltd. v. CC, where the Supreme Court emphasized that the importer should be entitled to the exemption as if the goods were manufactured in India. This perspective was crucial in determining the applicability of the exemption to imported goods. The Tribunal distinguished the judgment in Motiram Tolaram v. UOI, highlighting that the condition for exemption in the present case was the marking of the retail price on the package at the factory of production, without requiring statutory compliance with Indian laws. The Tribunal clarified that the word "clearance" in the entry did not hold legal significance and that the goods being cleared from the factory of production sufficed for the exemption. 3. Another issue raised was the contravention of the Standards of Weight and Measures (Packaged Commodities) Rules, 1977. The Commissioner (Appeals) confirmed the Deputy Commissioner's order, noting this contravention. However, the Tribunal found that Rule 33 of the said rules did not prohibit the importer from ensuring that declarations, including the retail price, were made appropriately before the goods arrived in India. The Tribunal concluded that the responsibility for making declarations did not solely rest on the importer, and the benefit of the exemption could not be denied based on the alleged contravention. 4. Ultimately, the Tribunal allowed the appeal and set aside the impugned order, ruling in favor of the appellant regarding the applicability of the exemption under clause (i) of entry 225 of Notification 5/99 to the imported colour television receivers.
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