Principal Commissioner of Customs Vs Kartar Valves Pvt. Ltd. (CESTAT Delhi)
CESTAT Delhi held that sprinklers are not included in the description of goods contained at Serial No. 325 of the notification dated 28.06.2017 chargeable to 18%, whereas, serial No. 195B of the notification does not restrict the sprinklers to any category and hence benefit of lower IGST rate of 12% available to fire sprinklers.
Facts-
The respondent imported ‘fire sprinklers’ claiming they were parts of fire production system and classified them under Customs Tariff Heading 84249000 on payment of 5% towards basic customs duty plus 12% towards Integrated Goods and Service Tax.
During post clearance audit by the Customs Audit Commissionerate, New Delhi an objection was raised that IGST at the rate of 18% was payable on fire sprinklers in terms of Serial No. 325 of Schedule III to the Notification dated 28.06.2017 and not at the rate of 12% as claimed by the respondent at Serial. No. 195B of Schedule-II of the said notification dated 28.06.2017.
Accordingly, a show cause notice was issued to the respondent proposing a demand of Rs. 2,82,524/- due to incorrect application of IGST rate. The Deputy Commissioner confirmed the demand. Feeling aggrieved, the respondent filed an appeal before the Commissioner (Appeals).
Conclusion-
Held that sprinklers have not been included in the description of goods contained at Serial No. 325 of the notification dated 28.06.2017 and in fact they seek to exclude what is contained at Serial No. 195B of the said notification. It is also clear that Serial No. 195B of the notification does not restrict the sprinklers to any category.
