Flextronics Technologies India Private Ltd. Vs Commissioner of Customs (CESTAT Chennai)
In the case of Flextronics Technologies India Pvt. Ltd. vs Commissioner of Customs, CESTAT Chennai examined the classification and duty exemption of connectors imported by the appellant. Flextronics filed an appeal against an order by the Commissioner of Customs (Appeals-I), Chennai, which upheld the denial of a 0% Basic Customs Duty (BCD) on the import of connectors. These were initially classified under Customs Tariff Item (CTI) 85369090 for electronic connectors, claiming exemption under Notification No. 50/2017-Cus. The customs authorities, however, reclassified the connectors under CTI 85177090, asserting that they were parts of cellular mobile phones, attracting a 10% BCD under Notification No. 57/2017-Cus.
The appellant argued that the connectors were used in automotive components such as headlamps, tail lamps, and infotainment systems and did not fall under the classification proposed by the customs authorities. Further, Flextronics alternatively sought duty exemption under S.No.6A of Notification No. 57/2017-Cus, which provides exemptions for connectors used in Printed Circuit Board Assemblies (PCBAs) of cellular mobile phones. The appellant cited a prior favorable adjudication in a similar case involving the same goods and period, which the customs department had accepted without further litigation.
CESTAT observed inconsistencies in the department’s stance, noting that the department had previously accepted that the connectors could qualify for exemption under S.No.6A of Notification No. 57/2017. Given this, CESTAT ruled in favor of Flextronics, allowing the appeal and granting consequential relief as per the law. The tribunal emphasized the principle that the department cannot adopt conflicting positions on the same issue in separate cases.
