Bharat Electronics Limited Vs Principal Commissioner of Customs (CESTAT Bangalore)
The appeal before the CESTAT Bangalore was filed by Bharat Electronics Limited against the order dated 20.12.2024 passed by the Principal Commissioner confirming demand of Integrated Goods and Service Tax (IGST), confiscation of imported goods, redemption fine and penalty under the Customs Act, 1962.
Bharat Electronics Limited, a Public Sector Undertaking engaged in manufacturing electronic products and systems for the Army, Navy and Air Force, had been nominated by the Ministry of Defence as lead integrator for the Long Range Surface-to-Air Missile System (LRSAM System) to be installed on Navy ships. The appellant imported the LRSAM System from Israel Aerospace Industries for supply to Mazagon Dock Ship Builders Ltd. and Garden Reach Ship Builders and Engineers. The LRSAM System consisted of MFSTAR radar and Weapon Control System embedded with hardware and operational software known as “EMI/EMC Analysis Software.”
The appellant issued a purchase order dated 19.11.2018 for “EMI & EMC MIL-STD 461F” and subsequently imported customized software stored in a CD through Bill of Entry dated 06.02.2021. The appellant claimed exemption from basic customs duty and IGST under Serial No. 21 of Notification No. 19/2019-Customs, dated the 6th July, 2019.
