Imported goods and retail price declaration can satisfy exemption conditions for additional customs duty despite pre-import labeling.

Imported colour television receivers were considered eligible for exemption under entry 225(i) of Notification No. 5/99 where the retail sale price was declared on the package at the time the goods were cleared from the factory of production. The Tribunal applied the principle that, for additional customs duty, imported goods are to be treated as if manufactured in India, so the benefit could not be denied merely because the goods were imported. It also noted that Rule 33(2) of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 placed compliance responsibility on the importer but did not require the retail price declaration to be affixed only after importation or prohibit pre-import declaration.

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Issues: Whether imported colour television receivers were entitled to the exemption under entry 225(i) of Notification No. 5/99 on the basis that the retail sale price was declared on the package at the time of clearance from the factory of production, and whether the provisions of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 barred the importer from claiming the benefit.

Analysis: The exemption condition required only that the packages bear the retail sale price at the time the goods were cleared from the factory of production. The Tribunal applied the principle that, for the purpose of additional customs duty, imported goods are to be treated as if they were manufactured in India, and held that the exemption could not be denied merely because the goods were imported. The Board circular was found not binding and not supported by reasoning. Rule 33(2) of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 was held to place responsibility on the importer to ensure compliance, but it did not require that the declaration be affixed only by the importer after arrival in India, nor did it prohibit the declaration being put on the packages before importation.

Conclusion: The exemption was available to the imported goods, and denial of the benefit was not justified.

Ratio Decidendi: Where an exemption condition for additional customs duty is satisfied by the imported goods on the footing that they are to be imagined as manufactured in India, the benefit cannot be denied merely because the goods are imported or because the retail price declaration was made before importation.

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