Industrial consumer exemption under Packaged Commodities Rules requires proof, and fresh opportunity to lead evidence was ordered.

Packages intended for industrial or institutional consumers fall outside the Packaged Commodities Rules, while packages meant for retail sale remain subject to MRP-based assessment. The definition of manufacturer is wide enough to cover a person who places or causes a brand mark to be placed on a packaged commodity. Because the appellant claimed that the imported goods were sold only to industrial consumers and the record did not fully address that claim, it had to prove the facts supporting exemption, and a reasonable opportunity to lead evidence was required. The impugned order was set aside and the matter remanded for fresh decision.

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Issues: Whether the imported packaged commodity was exempt from MRP-based assessment under Rule 2A of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 on the ground that it was meant for industrial or institutional consumers and whether the appellant should be given an opportunity to produce evidence on that claim.

Analysis: The applicability of the Packaged Commodities Rules turns on whether the goods are packages intended for retail sale or fall within the exemption for packages meant for industrial consumers or institutional consumers. Rule 2A excludes such packages from the chapter's application, and the definition of manufacturer under Rule 2(h) is wide enough to include a person who puts or causes to be put a mark on a packaged commodity not produced by him. The appellant asserted that the imported goods were sold only to industrial consumers and that its brand mark was placed on the packages, while the record before the lower authority did not fully address those assertions. In these circumstances, the burden remained on the appellant to establish the facts necessary for exemption, but it was proper that a reasonable opportunity be afforded to lead evidence on the claim.

Conclusion: The impugned order was set aside and the matter was remanded to the original authority for fresh decision after granting an opportunity to adduce evidence. If the appellant establishes sale to industrial or institutional consumers, the exemption under Rule 2A will apply.

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