Retail sale price declaration rules under Notification No. 4/2006-CE did not defeat the exemption for exported cement bags.

Cement exported in 50 kg bags to Nepal was not liable to denial of the benefit under S. No. 1C of Notification No. 4/2006-CE merely because no retail sale price was declared. The third proviso applies only where retail sale price is not required to be declared under the applicable packaged commodities rules and is also not declared; in that situation, duty is to be worked out as for goods cleared in other than packaged form. On these facts, the bags were not required to bear retail sale price declaration and none was declared, so the condition for denying the exemption was not satisfied and the duty demand could not be sustained.

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Issues: Whether cement exported in 50 kg bags to Nepal, where retail sale price was not required to be declared and was not declared, could be denied the benefit of S. No. 1C of Notification No. 4/2006-CE and subjected to duty at tariff rate.

Analysis: The third proviso to S. No. 1C of Notification No. 4/2006-CE provides that where retail sale price is not required to be declared under the applicable packaged commodities rules and is not declared, duty is to be determined as in the case of goods cleared in other than packaged form. Since the exported cement bags were not required to carry retail sale price declaration and none was declared, the condition for denying the exemption was not met. The reasoning was consistent with the earlier Tribunal view relied upon in the matter.

Conclusion: The assessee was entitled to the benefit of S. No. 1C of Notification No. 4/2006-CE and the duty demand could not be sustained.

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