Strict compliance with retail sale price marking condition denied concessional IGST on imported footwear and upheld confiscation.

Imported footwear qualified for the concessional IGST rate only if the retail sale price did not exceed the prescribed limit and was indelibly marked or embossed on the goods. Because the footwear admittedly lacked the required MRP/RSP marking, the condition for concessional treatment was not met and the lower rate was unavailable. On that basis, confiscation of the goods was justified, and the redemption fine and penalty under the Customs Act, 1962 were upheld as nominal in relation to the differential duty.

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Issues: Whether imported footwear was entitled to the concessional IGST rate of 5% without the retail sale price being indelibly marked on the goods, and whether confiscation with redemption fine and penalty was justified.

Analysis: The concessional rate under Notification No. 1/2017 was available only when the footwear bore a retail sale price not exceeding Rs. 1,000 per pair and such price was indelibly marked or embossed on the footwear itself. The admitted absence of MRP/RSP marking meant the condition for concessional treatment was not satisfied. In those circumstances, confiscation of the goods was justified. The redemption fine and penalty imposed under the Customs Act, 1962 were found to be nominal in relation to the differential duty involved.

Conclusion: The claim to the concessional IGST rate failed, and the order of confiscation with redemption fine and penalty was upheld against the assessee.

Ratio Decidendi: A concessional customs duty notification must be strictly complied with, and where the prescribed retail sale price marking condition is not fulfilled, the importer cannot claim the lower rate and the goods are liable to confiscation.

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