2016 (12) TMI 281 - AT - Central Excise

Cement - valuation - wholesale package or retail package - benefit of concessional rate of duty - Held that - Admittedly, the cement without marking of RSP has been sold by the assessee-appellant directly to these consumers and as such these transactions do not qualify as retail sale in view of the statutory definition which requires sale, distribution or delivery of such commodity through retail sale agency or other instrumentality for consumption by an individual. In the present case, admittedly, the sale being direct without any intermediary involved, the criteria for retail sale has not been fulfilled. As such, we find wherever such direct sale is effected the application of Packaged Commodities Rules, 197 will not be governed by Rule 3 for enforcement - the denial of the concession for the assessee-appellant on these grounds is not justifiable - appeal allowed - decided in favor of appellant-assessee.

Summary

Issues:
- Exemption from payment of duty on cement
- Interpretation of Weights and Measures Rules regarding wholesale packages and retail sale price declarations
- Applicability of Packaged Commodities Rules to direct sales to educational institutions and hospitals

Exemption from Payment of Duty on Cement:
The appellant, engaged in cement manufacturing, claimed exemption from duty payment under a notification, paying duty at a specified rate per metric ton plus cess for cement cleared to industrial/institutional consumers. The issue revolved around the eligibility for duty exemption under the notification.

Interpretation of Weights and Measures Rules Regarding Wholesale Packages and Retail Sale Price Declarations:
The Tribunal analyzed the Weights and Measures Rules, focusing on declarations required on packages meant for retail sale. It was highlighted that the provisions applied not only to retail but also wholesale transactions. The definition of a wholesale package was examined, emphasizing the inclusion of retail packages within it. The necessity of retail sale price declarations on wholesale packages containing retail packages was underscored. Specific provisions exempting declaration requirements were noted. The argument regarding the inclusion of necessary details related to retail packages within wholesale packages was discussed.

Applicability of Packaged Commodities Rules to Direct Sales to Educational Institutions and Hospitals:
The Tribunal referred to a previous decision involving M/s Prism Cement Ltd., where the issue of direct sales to educational institutions and hospitals was addressed. The decision emphasized that such sales did not qualify as retail sales under the Packaged Commodities Rules due to the absence of an intermediary, as required by the statutory definition. The Tribunal concluded that denial of concession for the appellant on these grounds was unjustifiable, setting aside the impugned order and granting relief to the appellant.

In conclusion, the judgment delved into the exemption from duty payment on cement, the interpretation of Weights and Measures Rules regarding wholesale packages and retail sale price declarations, and the applicability of Packaged Commodities Rules to direct sales to educational institutions and hospitals. The analysis provided clarity on the legal aspects and implications of the issues at hand, ultimately resulting in relief being granted to the appellant based on the Tribunal's findings and interpretations of the relevant rules and definitions.