Case Law Details
JMK Energy Vs Commissioner of Customs (CESTAT Delhi)
CESTAT Delhi held that simply because there are four other alternative means through which Portable Solar Home Electric Light – HANS 300 and HANS 150 can be charged, it doesn’t mean that they are not solar power based devices.
Facts- M/s JMK Energy, New Delhi filed this appeal to assail the order-in-original dated 14.08.2020 passed by the Commissioner of Customs, Patparganj, ICD, New Delhi whereby the appellant’s classification of imported goods under Customs Tariff Heading No. 85131010 and IGST S. No. 234 of Schedule I of Notification No. 1/2017-IGST (Rate) dated 28.06.2017 was rejected and the imported goods were held to be classifiable under CTH 85076000 and covered under S. No. 139 of IGST Schedule IV of Notification No. 1/2017-IGST (Rate) dated 28.06.2017 . Differential amount of IGST of Rs. 2,25,99,024/- was ordered to be recovered under Section 28(1) of the Customs Act, 1962 along with interest under Section 28AA. Penalty of Rs. 22,60,000/- was imposed under Section 112 and penalty of Rs. 1,00,000/- was imposed under Section 117 of the Act.
Conclusion- The imported goods in question ‘Portable Solar Home Electric Light – HANS 300 and HANS 150’ are designed for the purpose of performing several complementary or alternative functions viz. (a) generation of electricity solar energy; (b) storing the electricity so generated or collected through four other different means; and (c) supplying electricity to the in-built LEDs as well as for charging mobiles and running electrical devices. Evidently, their heart is the storage which can be done by five different means, one of which is charging using in-built solar panel. The power so generated can be used for several purposes and not only for using the LED lamps built into it the goods. Thus, they have multiple inputs and multiple output options. The imported goods can be used regardless of which input source is used or what the output purposes are but they cannot be used without the accumulator. Therefore, they deserve to be classified as accumulators under CTH 8507.
Held that simply because there are four other alternative means through which they can be charged, it does not mean that the imported goods are not solar power based devices. Therefore, the imported goods are not solar power based devices. Therefore, the imported goods merit classification under 234 of Schedule I of Notification No. 1/2017-IGST (Rate) dated 28.06.2017. Consequently, the demand for IGST differential duty along with interest cannot be sustained.
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