C.C.E.-Ahmedabad-i Vs Bossh Technology India Limited (CESTAT Ahmedabad)
In the case of C.C.E. Ahmedabad-I vs. Bossh Technology India Limited, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Ahmedabad reviewed whether assembling imported television parts qualifies as “manufacture” under Customs Rules, which would allow Bossh Technology India to import parts at a concessional duty rate. The initial application by Bossh Technology was rejected by the Assistant Commissioner, who argued that the imported goods, in semi-knockdown condition, did not undergo sufficient transformation to meet the definition of “manufacture.” The Assistant Commissioner held that no new product emerged since the televisions were imported in nearly complete form, merely requiring assembly.
However, on appeal, the Commissioner (Appeals) reversed this decision, asserting that Bossh Technology India’s assembly process qualifies as manufacturing, based on the fact that individual TV components were imported separately and assembled domestically. The CESTAT further upheld this view, noting that the process of assembling various components into a functional TV indeed constitutes manufacturing, as it results in a product with a new character, distinct use, and classification. Consequently, the CESTAT dismissed the revenue’s appeal, reinforcing that Bossh Technology India’s assembly operations meet the required criteria for concessional duty under the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017. This ruling clarifies the application of concessional duty for component-based assembly operations in India.
