Videocon D2H Limited Vs Additional Director General (CESTAT Delhi)
CESTAT Delhi held that the viewing card/smart card inserted into the set top box of DTH service provider is a good in itself and is not a part of the set top box. Hence, viewing cards is classifiable under CTI 8523 52 90 and not under 8529 90 90.
Facts- Videocon provides Direct to Home (D2H) television services to its subscribers. Videocon imported and cleared the Smart Cards by filing 144 Bills of Entry between 27.7.2013 and 19.3.2018 in the Air Cargo Complexes at Delhi and Mumbai. It classified the smart cards under Customs Tariff Item 8523 52 90, claimed the benefit of exemption Notification No. 24/2005-Cus dated 1/3/2005 (as amended) for basic customs duty and Notification No. 2/2011-CE dated 1.3.2011 for Additional Duty of Customs (CVD).
DRI gathered intelligence that Videocon was importing ―Satellite/Viewing Cards used exclusively with their Set Top Boxes but was mis-classifying them under CTI 8523 52 90 and was also mis-declaring them as ‘Videocon/IRDETO U SIM Smart Cards’ and clearing them wrongly claiming the benefit of Notification No. 24/2005-Cus dated 1.3.2005 (as amended) for basic customs duty and Notification No. 2/2011-CE dated 1.3.2011 for Additional Duty of Customs.
