Oppo Mobiles India Pvt. Ltd. Vs Principal Commissioner of Customs (Import) (CESTAT Delhi)
CESTAT Delhi held that microphones and receivers imported into India for manufacture of PCBA of cellular mobile phones is eligible for exemption from payment of customs duty under Exemption notification no. 57/2017-Customs dated 30.06.2017 prior to 06.07.2019.
Facts- M/s. Oppo Mobiles India Pvt. Ltd. has filed this appeal to assail the order dated 15.06.2020 passed by the Principal Commissioner of Customs, ACC (Imports), New Delhi by which the claim of the appellant seeking exemption of duty against the import of microphones and receivers has been rejected and the demand of duty has been confirmed with interest and penalty.
The appellant had claimed exemption of duty under a Notification No. 57/2017-Customs dated 30.06.2017. This Notification was first amended by Notification No. 22/2018-Customs dated 02.02.2018 and then amended by Notification No. 37/2018-Customs dated 02.04.2018 and Notification No. 24/2019-Cus dated 06.07.2019.
Conclusion- The Principal Commissioner has also imported his own knowledge to arrive at a conclusion that when the exterior of a phone is removed there are electronic components inside it which would include, amongst other, receivers and microphones and because “these components need a foundation to sit on and, therefore, these are attached to PCBA or installed correctly on the PCBA in order to function”. Such personal knowledge of the Principal Commissioner cannot form the basis of an order in the absence of any opinion to this effect given by an expert. The finding that receivers and microphones are not parts of PCBA and are parts of mobile phone is without any basis.
