Retail sale price basis for countervailing duty applies only when Legal Metrology and section 4A conditions are both met.

Countervailing duty on imported digital video projectors and decoders could be assessed on retail sale price basis only if both statutory conditions were met: the goods had to require retail sale price declaration under the Legal Metrology regime and also be covered by notification under section 4A(1) of the Central Excise Act, 1944. Because the equipment was imported for lease to theatre owners and those conditions were not satisfied on the facts, the prior view was followed and the assessment based on retail sale price was held unsustainable. The customs demand was not sustained and the appeal succeeded in favour of the assessee.

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Issues: Whether additional duty of customs was payable on the imported digital video projectors and decoders on the basis of retail sale price instead of transaction value.

Analysis: Countervailing duty under section 3(2) of the Customs Tariff Act, 1975 can be levied on the retail sale price basis only when both statutory conditions are satisfied: the imported article must be one for which declaration of retail sale price is required under the Legal Metrology law, and the goods must be specified by notification under section 4A(1) of the Central Excise Act, 1944. The imported equipment was intended for lease to theatre owners and the issue had already been considered in the appellant's own earlier appeal, following the principle applied in the analogous line of cases on the meaning of sale under the Legal Metrology regime. On the facts, the earlier view was followed and the impugned assessment was found unsustainable.

Conclusion: The duty could not be levied on retail sale price basis and the order was liable to be set aside in favour of the assessee.

Final Conclusion: The appeal succeeded and the customs demand based on retail sale price was not sustained.

Ratio Decidendi: CVD can be charged on retail sale price basis only if the imported goods are required to declare RSP under the applicable Legal Metrology law and are also covered by notification under section 4A(1) of the Central Excise Act, 1944; absent satisfaction of both conditions, transaction value governs.

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