2013 (4) TMI 714 - AT - Customs

Summary

Issues involved:
The issue involves the eligibility of the appellant for the benefit of Notification No. 29/2010 regarding exemption from Special Additional Duty of Customs on pre-packed goods intended for retail sale.

Details of the judgment:

Issue 1: Eligibility for SAD exemption under Notification No. 29/2010
The appellant imported pre-packed goods intended for retail sale, assessed to Additional Duty of Customs (CVD) on MRP basis under Section 4A of the Central Excise Act. The appellant claimed SAD exemption under Notification No. 29/2010. However, the department contended that re-packing and re-labelling activities post-importation constituted manufacture, making the appellant ineligible for the exemption. A notice was issued demanding differential duty, interest, and penalty. The lower appellate authority confirmed the demand. The appellant argued that since the goods are intended for retail sale, they should be eligible for the SAD exemption under the said Notification. The appellant relied on a previous ruling and Tribunal decisions to support their contention.

Decision:
The Tribunal noted that the imported goods were pre-packed and intended for retail sale, even after re-packing and re-labelling. The Advance Ruling Authority had previously directed the appellant to discharge CVD liability on the MRP price, indicating the goods' retail intent. The Tribunal held that the benefit of Notification No. 29/2010 cannot be denied based on re-packing activities before retail sale. Citing precedent cases, the Tribunal allowed the appeal, granting consequential relief.

Conclusion:
The appellant was deemed eligible for the SAD exemption under Notification No. 29/2010, as the goods, despite re-packing, were intended for retail sale, as per the Tribunal's decision and the Advance Ruling Authority's directive.