Industrial-use packaged goods need not face retail declaration treatment if statutory labeling can be cured before clearance.

Packaged commodities imported for industrial or institutional consumers are excluded from the retail-sale declaration regime under the Legal Metrology (Packaged Commodities) Rules, 2011, so clearance should not be denied merely for absence of a pre-existing retail declaration. Where the importer shows the goods are for such non-retail use and is willing to affix the prescribed "not for retail sale" label before release, the defect may be cured before home consumption. On that basis, absolute confiscation was considered unwarranted and release of the goods was permitted subject to compliance with the statutory labeling requirement.

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Issues: Whether imported packaged commodities meant for industrial or institutional consumers could be denied clearance for want of a pre-existing retail-sale declaration, and whether the importer ought to be permitted to cure the defect by affixing "not for retail sale" labels before release.

Analysis: The imported goods were found to be packaged commodities meant for industrial use rather than retail sale. The Legal Metrology (Packaged Commodities) Rules, 2011 exclude packaged commodities meant for industrial consumers or institutional consumers from the retail-sale regime, and the declaration requirement is tied to that category of use. The importer had produced material showing prior sales to industrial users and expressed willingness to comply by affixing the required declaration before clearance. In such circumstances, denial of the benefit on the ground of absence of additional evidence at the time of import was held unsustainable. The order of absolute confiscation was also found inappropriate where compliance could be secured by allowing the statutory label to be affixed before home consumption.

Conclusion: The denial of clearance was set aside, and the importer was entitled to affix the required "not for retail sale" labels and obtain release of the goods.

Final Conclusion: The appeal succeeded on the principal customs and legal metrology issue, with consequential relief for clearance of the goods and consideration of the importer's request concerning charges.

Ratio Decidendi: Packaged commodities meant for industrial or institutional consumers are not to be treated as retail-sale goods for the purpose of the Legal Metrology (Packaged Commodities) Rules, 2011, and where the statutory declaration can still be complied with before clearance, absolute confiscation is unwarranted.

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