MRP-based customs valuation excluded for industrial-use truck refrigeration units; transaction value applies instead.

Imported truck refrigeration units declared for exclusive use by the transport industry were treated as outside MRP-based valuation because they were not intended for retail sale. Packaged commodities meant for industrial or institutional consumers fall outside the MRP declaration framework, and the Tribunal followed its earlier view that goods cleared in bulk to industrial consumers are not assessable on MRP basis. As a result, additional customs duty had to be assessed on transaction value under Section 4 rather than on MRP basis under Section 4A.

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Issues: Whether imported truck refrigeration units, declared as meant for exclusive use by the transport industry, were liable to additional duty of customs on MRP basis under Section 4A of the Central Excise Act, 1944, or on transaction value under Section 4 of that Act.

Analysis: The goods were stated to be packed for exclusive use in the transport industry and were not intended for retail sale. The applicable legal framework requires MRP declaration only for commodities covered by the notification and sold in retail packages, while packaged commodities meant for industrial or institutional consumers fall outside the relevant chapter. The Tribunal applied the earlier view that goods cleared to industrial consumers in bulk are not liable to MRP-based assessment, and followed the same line of reasoning to the imported refrigeration units.

Conclusion: The goods were not liable to assessment on MRP basis and the assessable value for CVD had to be determined on transaction value. The issue was decided in favour of the assessee.

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