Exclusive industrial-use packaging can qualify for exemption where no evidence shows retail or non-industrial sales.

Rule 34 of the Standards of Weight and Measures (Packaged Commodities) Rules, 1977 excludes packages clearly marked as specially packed for exclusive industrial use as raw material or for servicing an industry, mine or quarry, subject to the stated exclusions. Where the goods were found to be sold directly to industrial consumers and through dealers only to industrial users, and the package itself indicated exclusive industrial use, the benefit of the rule was available. In the absence of evidence of retail sale or intended sale to non-industrial consumers, the department failed to dislodge the exemption.

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Issues: Whether the respondent was entitled to the benefit of Rule 34 of the Standards of Weight and Measures (Packaged Commodities) Rules, 1977 on the footing that the goods were specially packed for exclusive use of industry and no evidence showed retail sale or sale to non-industrial consumers.

Analysis: Rule 34 excludes packages that are unambiguously marked as specially packed for exclusive use of industry as raw material or for servicing an industry, mine or quarry, subject to the stated exclusions. The finding of the appellate authority was that the goods were sold directly to industrial consumers and through dealers only to industrial users, with the package itself indicating exclusive industrial use. No material was produced to show sale, or intended sale, to retail consumers or to customers other than industrial units. In the absence of such evidence, the department failed to dislodge the entitlement to the exemption under the rule.

Conclusion: The respondent was entitled to the benefit of Rule 34 and the departmental challenge failed.

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