Case Law Details
American Power Conversion India Pvt. Ltd. Vs Commissioner of Customs (CESTAT Bangalore)
Introduction: The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Bangalore has made a significant ruling in the case of American Power Conversion India Pvt. Ltd. vs Commissioner of Customs. The judgment sheds light on the restrictions and liabilities concerning the import of second-hand goods under the Foreign Trade Policy.
Background of the Case: American Power Conversion India Pvt. Ltd., engaged in the manufacturing of uninterrupted power supplies and inverters, imported used Enviro-tuff Liner (ETL) packing material. They classified the product under code 39232990 and claimed benefits under Notification No. 52/2003 dated 01.03.2003. The Commissioner confirmed the demand for duty, redemption fine, and penalty, arguing that the imported items did not qualify for the exemption stipulated in the notification.
Arguments from the Appellant: The company’s counsel contended that the imported ETL liners were essential for ensuring the safe transit of their sophisticated electronic products. They argued that these liners served as packaging material, thereby qualifying for the benefits under Notification No. 52/2003 dated 01.03.2003.
Revenue Department’s Stand: The Revenue Department countered that the imported goods did not have a direct connection with the goods being exported and were second-hand, requiring a special license for import as they are categorized as restricted items under the Foreign Trade Policy.
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