Direct supply to industrial consumers is not retail sale, so exemption could not be denied on packaged commodity rules.

Direct supply of packaged goods to industrial or institutional consumers without any intermediary was held not to constitute retail sale for purposes of the packaged commodities rules. The Tribunal read the wholesale and retail package definitions with the requirements for retail-sale price declarations, and noted that the retail-sale concept applies only where goods are sold through a retail sale agency or similar instrumentality for individual consumption. On that basis, exemption could not be denied, the concessional duty benefit was available, and the impugned order was set aside.

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Issues: Whether cement cleared directly to industrial or institutional consumers without marking retail sale price could be treated as retail sale so as to deny exemption under the relevant notification.

Analysis: The definition of wholesale package under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 was read with the provisions governing retail packages. The rules required retail sale price declarations on packages intended for retail sale, while separate exemptions existed under the proviso to Rule 6 and Rule 34. Direct sales to consumers without any intermediary did not satisfy the statutory concept of retail sale, because retail sale contemplates sale through a retail sale agency or other instrumentality for consumption by an individual. The Tribunal's earlier view on identical facts was applied, holding that direct supplies to institutional consumers were outside the retail sale category.

Conclusion: The denial of exemption was not sustainable and the assessee was entitled to the concessional duty benefit.

Final Conclusion: The impugned order was set aside and relief was granted to the assessee.

Ratio Decidendi: Direct supply of packaged goods to institutional or industrial consumers without any intermediary is not retail sale for the purpose of denying exemption where the governing rules require retail-sale treatment only for retail transactions.

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