Principal Commissioner of Customs Vs Go IP Global Services Pvt. Ltd. (Delhi High Court)
Delhi High Court held that exemption from Basic Customs Duty [BCD] admissible in case of WAPs import employing either Multiple Input/ Multiple Output (MIMO) or Long Term Evolution (LTE) standards prior to amendment brought vide Finance Act, 2021.
Facts- This is an appeal u/s. 130G of the Customs Act, 1962 arising out of the Customs, Excise and Service Tax Appellate Tribunal impugned order dated 3rdJanuary, 2024. The short issue that arises in the present petition is in respect of the interpretation of the word ‘and’ appearing in the clause (iv) of Serial No. 13 of Notification No. 11/2014-Customs dated 11thJuly, 2014, e., “Multiple Input/ Multiple Output (MIMO) and Long Term Evolution (LTE) Products”. The CESTAT vide the impugned order has interpreted the said terms i.e., MIMO and LTE in conjunction and thereby, held that the subject goods would not be covered in the exclusion clause of the exemption notification.
Conclusion- Coordinate Bench of this Court in Commissioner of Customs (Air) Chennai -VII Commissionerate, Chennai v. Ingram Micro India Pvt. Ltd. held that that the phrase “MIMO and LTE Products” in Serial No. 13(iv) of the amended Notification No. 24/2005 applies solely to products combining MIMO technology and LTE standards. The exclusion clause cannot be stretched to encompass products featuring either one of the two technologies. Accordingly, the WAPs imported by the respondent, which employ MIMO technology but not the LTE standards, are entitled to the exemption from Basic Customs Duty.
