Customs duty cannot be levied on goods which is otherwise exempt, merely on the ground that the value of that good is not separately available or separately indicated in the invoice
Epson India Pvt. Ltd. Vs. CC (Imp.), Chennai [2015 (1) TMI 210 – CESTAT Chennai]
Epson India Pvt. Ltd.(the Assessee) imported Inkjet printer with printer software and ink cartridges (impugned goods) under a single Bill of Entry No. 618553 dated April 21, 2004 by classifying them under separate chapter headings and claimed concessional rate of duty under the Notification No. 21/2002-Customs dated March 1, 2002 (the Notification 21/2002). The Adjudicating Authority denied the concessional rate of duty under the Notification No. 21/2002 and classified the impugned goods together under CTH 847160 as printer in terms of Section 19 of the Customs Act, 1962 and Accessories (Condition) Rules, 1963 since the same were imported under single Bill of Entry.
On appeal being filed before the Commissioner (Appeals), the Commissioner (Appeals) partly allowed the appeal in favour of the Assessee and held that Ink cartridges and ribbon cartridges are classified under CTH 8473.3050 and allowed the benefit of the Notification 21/2002. Further, the Commissioner (Appeals) partly upheld the Order of the Adjudicating Authority in respect of printer software and held that the value of software is to be added to the printer and assessed as printer.
Being aggrieved by the Order of the Commissioner (Appeals), the Assessee preferred an appeal before the Hon’ble CESTAT, Chennai in respect of assessment of inclusion of value of software with printer. On the other hand, appeal was also filed by the Department in respect of the classification of Ink cartridges and ribbon cartridges under CTH 8473.3050 as was held by the Commissioner (Appeals).
The Hon’ble CESTAT, Chennai relying upon the decision of the Hon’ble Tribunal in the case of CC, Mumbai Vs. Hewlett Packard India Ltd. [2006 (199) ELT 317 (Tri.- Mum.)], held as under:
Therefore, the Hon’ble Tribunal allowed the benefit of the Notification No. 21/2002 after holding that the printer software, ink cartridges and ribbon cartridges are classifiable under CTH 8524 and CTH 8473.3050 respectively.
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