GE Vernova T & D India Limited Vs Commissioner of Customs (CESTAT Delhi)
CESTAT Allows Excise Exemption Because Relays Had Contact Rating Below 7 Amperes; Additional Digital Features Do Not Change Essential Nature of Relays, Rules CESTAT; Classification as Relays Upheld Because Principal Function Test Favoured Importer; CESTAT Sets Aside Duty Demand After Finding Customs Misapplied Contact Rating of MICOM Relays.
In , the appeals before the Customs, Excise and Service Tax Appellate Tribunal Delhi concerned classification and exemption eligibility of various multifunction protection devices imported by GE Vernova T&D India Limited during the period 05.03.2013 to 04.12.2017. The dispute related to whether Midos relays, relays for tap changer control and transformer monitoring, K-range relays, and MICOM relays were classifiable as “relays” under Customs Tariff Item (CTI) 8536 49 00 or as Feeder Management Intelligent Electronic Devices (FMIEDs) under CTI 8536 90 90 because of their multifunctional features.
The exemption dispute arose under Notification No. 12/2012 dated 17.03.2012, which granted exemption to relays of contact rating up to 7 amperes. Customs authorities alleged that the imported products were multifunctional intelligent devices with contact ratings above 7 amperes and therefore not eligible for exemption. Differential customs duty of Rs.2.39 crore along with interest and penalties under Sections 112, 114A and 114AA of the Customs Act was confirmed by the Commissioner.
