Retail sale definition determines concessional duty for cement sold without RSP marking to industrial consumers.

Cement cleared without RSP marking to industrial consumers was treated as outside the definition of retail sale under Rule 2(q) of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977, where the goods were sold directly and not through a retail sale agency or other intermediary. On that basis, Rule 3 was held not to apply in the manner asserted by the department, and the buyers did not lose the benefit of concessional duty merely because the clearances were to industrial users. The impugned orders were unsustainable, and concessional treatment was upheld.

---

---

Issues: Whether clearances of cement without RSP marking to industrial consumers qualified for concessional duty under serial No. 1(c) of Notification No. 4/2006 dated 01.03.2006, and whether such sales attracted the provisions of the Packaged Commodities Rules.

Analysis: The Tribunal followed earlier decisions holding that the character of the sale must be tested with reference to the statutory definition of retail sale under Rule 2(q) of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977. Where cement without RSP marking is sold directly to consumers and not through a retail sale agency or other intermediary instrumentality, the transaction does not answer the definition of retail sale. In such circumstances, Rule 3 does not govern the transaction in the manner suggested by the department, and the buyers do not lose the benefit merely because the goods were cleared to industrial users.

Conclusion: The impugned orders could not be sustained, and the appellants were entitled to the concessional treatment claimed. The appeals were allowed.

---