2012 (8) TMI 693 - AT - Customs

Import of Barcode Printers - additional duty of customs under Section 3 of the Customs Tariff Act - whether the appellant are required to affix MRP Held that - Whether the shopping malls which are typical buyers of the imported printers) can be regarded as institutional consumers - Shopping malls, or stockists are not similar to a transporter or a hotel - it is required under the Standards of Weights and Measures (PC) Rules, 1977 to declare on the package of the imported article its retail sale price - goods are liable to value as per provisions of Section 3(2) of the Customs Tariff Act, 1975

Summary

Issues:
Calculation of additional duty of customs under Section 3 of the Customs Tariff Act, 1975 based on retail price of Barcode Printers P400 imported by the appellant. Whether the Barcode printers are required to declare Maximum Retail Price (MRP) on them as per the Standards of Weights and Measures (PC) Rules, 1977.

Analysis:
The dispute in this case revolves around the calculation of the additional duty of customs under Section 3 of the Customs Tariff Act, 1975 concerning the imported Barcode Printers P400. The primary issue is whether the retail price of such printers should be taken as the basis for valuation. This valuation is subject to the conditions specified in the proviso to sub-section 3(2) of the Act. The first condition is that the article must be required under the Standards of Weights and Measures Act, 1976 or the Standards of Weights and Measures (PC) Rules, 1977 to declare its retail sale price. The second condition is that the article must have been notified under Section 4A of the Central Excise Act, 1944 for such valuation based on the retail price.

The appellant argues that the imported Barcode Printers P400 are not meant for retail sale but for industrial use. They rely on a previous decision to support their contention. The central issue before the Tribunal is whether the impugned goods are required to declare the Maximum Retail Price (MRP) as per the Standards of Weights and Measures (PC) Rules, 1977. To determine this, the Tribunal examines the relevant rules. Rule 2A of the Standards of Weights and Measures (PC) Rules, 1977 exempts packaged commodities meant for industrial or institutional consumers from certain provisions. The Tribunal finds that Barcode printers, in this case, are designed for retail sale and not for service industries like transportation or hotels. Consequently, the Tribunal rules that the goods are indeed required to have the MRP affixed on them as per the rules.

The Tribunal dismisses the appellant's appeal, upholding the impugned order. They find no infirmity in the decision and hold that the impugned goods are liable to be valued as per the provisions of Section 3(2) of the Customs Tariff Act, 1975. The decision is based on the interpretation of the relevant rules and the nature of the imported goods, confirming the requirement for MRP declaration on the Barcode Printers P400.