Sony India Private Limited Vs Commissioner of Customs (CESTAT Bangalore)
CESTAT Bangalore rules Sony India eligible for 1% concessional CVD on mobile imports, citing Supreme Court precedents on importer’s credit eligibility; Sony India Eligible for 1% Concessional Customs Duty on Mobile Imports, CESTAT Rules; Importers Not Availing CENVAT Credit Deemed Compliant with Exemption Condition
BENGALURU: In a significant ruling, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Bangalore, has provided relief to Sony India Private Limited, confirming its eligibility for a concessional rate of 1% additional duty of customs, commonly known as CVD, on imported mobile phones. The tribunal set aside lower authorities’ orders that had rejected Sony India’s request for reassessment of bills of entry to claim the lower duty rate.
The case, Sony India Private Limited Vs Commissioner of Customs, concerned imports of mobile phones between January 2015 and July 2015. Sony India had initially paid CVD at the rate of 6% as per a relevant notification (Sl. No. 263A(i) of Notification No. 12/2012-CE). However, another entry in the same notification (Sl. No. 263A(ii)) prescribed a concessional rate of 1% CVD for mobile handsets, subject to a condition that no CENVAT credit under Rule 3 or Rule 13 of the CENVAT Credit Rules, 2004, had been taken on inputs or capital goods used in the manufacture of the goods.
