Samsung India Electronics Pvt. Ltd. Vs Deputy Commissioner of Customs (CESTAT Delhi)
CESTAT Delhi held that since Assembly Front imported qualifies as ‘Display Assembly’ used in manufacture of cellular mobile phones, the same would be entitled to exemption from duty of customs under clause 6(a)(iv) of the Customs Notification 57/2017 dated 30.06.2017.
Facts- The present appeal has been filed by Samsung India Electronics Pvt. Ltd for setting aside the order dated 23.12.2021 passed by the Commissioner of Customs (Appeals). The said order rejects the appeal filed by the appellant and confirms the order dated 20.02.2020 passed by the Deputy Commissioner of Customs Group-VA.
The Deputy Commissioner held that Mechanical Electrical Assembly Front imported by the appellant cannot be considered as “Display Assembly” and, therefore, would not be entitled for exemption under Customs Notification No. 57/2017 dated 30.06.2017, as amended from time to time. The Deputy Commissioner, accordingly, finalized the provisionally assessed Bills of Entry by disallowing the benefit of the aforesaid Exemption Notification and ordered for payment of differential duty.
Conclusion- The Notification dated 28.04.2017 issued by MEITY provides for a PMP with the objective of progressively increasing the domestic value addition for establishment of robust cellular mobile handset manufacturing ecosystem in India so as to enable the industry to plan their investments in the sector. This Notification cannot be considered for examining the Exemption Notification for the simple reason that it is the terms of the Exemption Notification that have to be read to determine whether exemption can be granted or not to a particular product. It is the plain language and not the intention of the authority issuing the Notification that has to be seen while interpreting a taxing statue or an Exemption Notification.
