Retail sale price assessment for customs duty applies only when imported goods are intended for retail sale, not for industrial use.

Retail sale price-based additional customs duty is attracted only when imported goods are intended for retail sale and the statutory retail sale price declaration requirement applies. Where goods are destined for industrial or institutional consumers, or are to undergo further processing or labelling before sale, that basis of assessment does not apply merely because the goods fall within a relevant schedule or may later be cleared under the central excise regime. In such cases, assessment must proceed on transaction value. The demand based on retail sale price was therefore unsustainable, and the order confirming differential duty, confiscation, redemption fine, and penalty was set aside.

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Issues: Whether goods liable to assessment on retail sale price basis when manufactured in India can be subjected to additional duty of customs on that basis at import even when they are not intended for retail sale as such after import.

Analysis: The goods were required to bear statutory particulars under the Legal Metrology law, but the decisive factor for the alternative method of assessment was whether they were intended for retail sale. Goods routed for industrial or institutional consumers and undergoing further processing or labelling before sale do not satisfy that test. In such circumstances, the retail sale price mechanism is not attracted merely because the goods fall within the relevant schedule or are capable of later clearance under the central excise regime. The applicable basis of assessment is therefore transaction value, and the contrary view adopted in the impugned order was unsustainable.

Conclusion: The demand based on retail sale price was not legally sustainable and the appellant succeeded on this issue.

Final Conclusion: The order confirming differential duty, confiscation, redemption fine, and penalty could not be sustained and was set aside.

Ratio Decidendi: Retail sale price assessment of additional customs duty is attracted only where the goods are intended for retail sale and the statutory requirement to declare retail sale price applies; where that condition is absent, assessment must proceed on transaction value.

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