Case Law Details
Huber + Sunher Electronics Pvt. Ltd Vs Principal Commissioner of Customs (CESTAT Delhi)
In a significant ruling, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Delhi has exonerated Huber + Sunher Electronics Pvt. Ltd. from a hefty penalty imposed by the Principal Commissioner of Customs. The case revolved around a typographical error in the Bills of Entry regarding the amperage of Internal Remote Electrical Tilt (iRET) switches. This ruling highlights the importance of accurate documentation and the potential consequences of minor errors in import documentation.
Detailed Analysis
Huber + Sunher Electronics Pvt. Ltd., a manufacturer of Base Transceiver Station (BTS) antennas, imports iRET switches crucial for adjusting antenna angles. Between February 2, 2018, and March 31, 2019, the company imported two models of iRET switches: Runshine RS-IRCU50D-1 and Runshine RS-IRCU50D-2. These imports were initially assessed under the benefit of Exemption Notification No. 50/2017-Cus (S.No. 427), which applies to switches with a contact rating of less than 5 amperes.
During a post-clearance audit, it was found that the Bills of Entry and accompanying documents erroneously stated the switches as having a contact rating of 5 amperes. This discrepancy led the authorities to believe that the company had incorrectly availed of the exemption notification, resulting in a demand for Rs. 96,74,804 under Section 28(1) of the Customs Act, 1962, along with a penalty of Rs. 9,00,000 under Section 112(b)(ii).
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