2012 (12) TMI 890 - AT - Customs

Waiver of pre-deposit of Custom duty - Notification NO.29/2010 - Notification No. 6/2006 - Assessee made imports of microprocessors meant for fitment inside CPU housing/Laptop body - Exempted from payment of additional duty of customs leviable u/s 3(1) Notification No.29/2010 provides nil rate of duty in respect of the goods classifiable under any chapter in respect of all pre-packaged goods intended for retail sale Held that - Goods in question are in pre-packaged and as per the Notification No. 44(RE-2000)/1997-2002 dated 24.11.2000 issued by the DGFT provides that all pre-package commodities are to be affixed MRP. In view of the above notification as the goods in question are pre-packaged therefore are to be affixed retail sale price. Therefore, prima facie in view of the notification cannot be denied on the grounds that are not after retail sale price. Stay granted

Summary

Issues:
- Waiver of pre-deposit of duty and interest under Notification No.29/2010
- Denial of benefit of Notification No.29/2010 due to availing exemption under Notification No.6/2006
- Interpretation of Notification No.29/2010 regarding nil rate of duty for pre-packaged goods intended for retail sale
- Requirement of affixing retail sale price on pre-packaged goods as per DGFT notification

Analysis:
The appellant sought a waiver of pre-deposit of duty amounting to Rs. 16,93,84,353/- and interest, which was confirmed after being denied the benefit of Notification No.29/2010 due to availing exemption under Notification No.6/2006. The issue revolved around the interpretation of Notification No.29/2010, which provides a nil rate of duty for pre-packaged goods intended for retail sale. The Tribunal noted that the goods in question were pre-packaged and, as per a DGFT notification, all pre-packaged commodities are required to have a retail sale price affixed. Therefore, the Tribunal held that the benefit of Notification No.29/2010 could not be denied on the grounds of not having a retail sale price affixed. Consequently, the pre-deposit of dues was waived, and recovery of the same was stayed during the pendency of the appeal, thereby allowing the stay petition.

In conclusion, the Tribunal's decision centered on the correct interpretation of Notification No.29/2010 and the requirement to affix retail sale prices on pre-packaged goods as per DGFT regulations. The Tribunal found that since the goods in question were pre-packaged, the benefit of the notification could not be denied based on the absence of a retail sale price. As a result, the appellant's request for a waiver of pre-deposit of duty and interest was granted, and recovery of the dues was stayed pending the appeal process.