Communication modules are classifiable under CTI 8517 70 90: CESTAT Delhi

Secure Meters Ltd. Vs Principal Commissioner of Customs (Imports) (CESTAT Delhi)

CESTAT Delhi held that communication modules being parts of communication hubs is classifiable under CTI 8517 70 90. Accordingly, differential duty and also interest and imposition of penalty u/s. 114A set aside.

Facts- M/s Secure Meters Ltd. and the Revenue assailing the order-in-original dated 28.5.2020 passed by the Principal Commissioner whereby he decided the proposals made in the Show Cause Notice dated 18.12.2018 issued by the Directorate General of Revenue Intelligence.

In the impugned order, the Principal Commissioner rejected the importer’s claim that the communication modules imported by it were classifiable under Customs Tariff Item 8517 70 90 as parts of communication hubs and held that they were classifiable under CTI 9028 90 10/ CTI 9028 90 90 as parts of electricity meters / gas meters. Consequently, he held that the importer was ineligible for exemption Notification No. 24/2005-Cus. dated 01.03.2005 (till 30.6.2017) and Notification No. 57/2017-Cus. (S. No. 5) (from 01.07.2017). He confirmed demand of differential Customs duty of Rs. 45,83,88,872/- u/s. 28 of the Customs Act, 1962 invoking extended period of limitation along with interest u/s. 28AA of the Customs Act. He imposed an amount equal to the duty as penalty u/s. 114A of the Customs Act but refrained from imposing penalties u/s. 112 and 114AA of the Customs Act.