Packaged commodities exception for institutional and captive cement clearances justified complete waiver of pre-deposit and recovery stay.

Cement bags cleared to a housing corporation and for captive use were treated as falling within the exception for supplies to specified institutional or industrial consumers under Rule 2A of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977. The notification's differential treatment depended on whether retail sale price was required to be declared, and the Revenue's proviso was inapplicable because the conditions that RSP was not required to be declared and was not declared had to coexist. The earlier Sagar Cements ruling was found prima facie applicable, and the legal metrology communication did not change that position. Complete waiver of pre-deposit and stay of recovery pending appeal was granted.

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Issues: Whether the appellants had made out a case for complete waiver of pre-deposit and stay of recovery pending appeal in the light of the applicable notification and the packaging rules.

Analysis: The applicable notification treated cement bags differently depending upon whether retail sale price was required to be declared. Rule 2A of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 created an exception for supplies to specified institutional or industrial consumers, and on the facts the clearances to the housing corporation and for own consumption fell within that exception. The proviso relied upon by Revenue was held inapplicable because the condition that retail sale price was not required to be declared and was not declared had to coexist. The earlier decision in Sagar Cements was found to be prima facie applicable, and the legal metrology communication did not alter that position.

Conclusion: The appellants were entitled to complete waiver of pre-deposit and stay of recovery pending disposal of the appeal.

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