TaxTMI 
TaxTMI 
2023 (9) TMI 420
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....t under Legal Metrology (Packaged Commodities) Rules, 2011, goods were detained. Appellants vide letter dated 01.11.2022 submitted that the goods are not meant for retail sale and not falling under the category of goods as alleged. The goods are sold to industrial users after doing processing like cutting, shaping according to the requirement of the buyers. Moreover present package is only for the purpose of transportation. Further the appellant also produced GST invoice related to past import along with MSME and GST registration. However, the Adjudication Authority ordered absolute confiscation of the goods and also imposed penalty of Rs.2 lakhs under Section 112 of Customs Act, 1962. In appeal, first Appellate Authority also upheld the or....
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....bject to provisions of Legal Metrology (Packaged Commodities) Rules 2011 as alleged, if the appellant fulfil the condition regarding affixing of label showing 'not for retail sale' it is sufficient to meet the conditions under ibid Rules. The learned Counsel also drew our attention to Bill of Entry dated 20.09.2022 and Bill of Entry dated 10.11.2022 where same goods were imported through very same port and no such objection was made at any point of time. Regarding absolute confiscation, learned Counsel drew our attention to the judgment of the Hon'ble Supreme Court in the case of O. Konavalov V/s Commander, Coast Guard Region reported in 2006 (197) E.L.T. 3 (S.C.). Relevant paragraph of the order is reproduced below for ready reference:- ....
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....ers and the provisions are applicable only when imported goods are meant for resale. As per Section 2 (bb) of the Legal Metrology (Packaged Commodities) Rules, 2011 "institutional consumer" means the consumer who buys packaged commodities directly from the manufacturer or from an importer or wholesale dealer for use by that industry and the package shall have declaration 'not for retail sale' , The Adjudication Authority admits that since goods are meant for industrial consumers, it is exempted from the provisions of the ibid Rules. The Adjudication Authority also admits that the clients to whom the goods imported under previous Bill of Entry sold by the appellant are doing manufacturing activity. However in present import, the benefit is d....