Globus Infocomm Ltd. Vs Principal Commissioner of Customs (Import) (CESTAT Delhi)
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in the case of Globus Infocomm Ltd. vs. Principal Commissioner of Customs (Import) has accepted the plea for a change of classification. The tribunal ordered the Principal Commissioner to re-examine the classification, duty demands, allegations of mis-declaration, and penalties imposed in light of the new classification plea raised by the appellant.
Background:
- Globus Infocomm Ltd. appealed against the order passed by the Principal Commissioner of Customs (Import), which confirmed the demand for differential duty, imposed fines and penalties, and alleged mis-declaration of the Retail Sales Price (RSP).
- The disputed goods were LED displays for ADP machines, and the appellant had claimed the benefit of an exemption notification while also declaring the RSP for additional duty calculation.
New Classification Plea:
- The appellant’s counsel raised a new plea for classifying the goods under Customs Tariff Heading (CTH) 84714190, which would result in a nil rate of basic customs duty and render the exemption notification irrelevant.
- According to the counsel, goods classified under CTH 84714190 are not covered by Section 3A of the Central Excise Act and the Legal Metrology Rules, thereby eliminating the need for RSP-based additional duty calculation.
Re-Examination and Consequential Effects:
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