Concessional duty on packaged cement with declared retail sale price applies even for supplies to Government bodies.

Packaged cement bearing a declared retail sale price and sold below the notification threshold qualified for the concessional duty rate under the exemption entry. The fact that the supplies were made to Government bodies did not change the applicable tariff treatment once the notification conditions were satisfied. On that reasoning, the excess duty had been paid incorrectly and refund was due; the denial of refund was unsustainable.

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Issues: Whether cement supplied in packaged form with retail sale price declared and sold below the specified threshold to Government bodies was eligible for the concessional rate of duty under the relevant exemption notification, thereby entitling the appellant to refund of excess duty.

Analysis: The goods were cleared in packaged form with retail sale price marked on the bags and the declared price was below the threshold specified in the notification. The applicable entry under the notification prescribed a lower rate for such goods, while a higher rate applied to goods not covered by that condition. Supply to Government bodies did not alter the applicable tariff entry once the conditions of the concessional entry were satisfied. The earlier decision relied upon the same principle and held that where retail sale price declaration was required and made, the goods remained within the notified concessional category.

Conclusion: The appellant was entitled to the concessional rate and the refund of excess duty was wrongly denied.

Final Conclusion: The order denying refund was unsustainable and the appeal succeeded.

Ratio Decidendi: Where goods are cleared in packaged form with retail sale price duly declared and the conditions of the concessional notification are satisfied, the lower notified rate applies notwithstanding that the supplies are made to Government bodies.

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