One97 Communications Limited Vs Principal Commissioner of Customs (CESTAT Delhi)
CESTAT Delhi held that ‘paytm’ soundbox is primarily meant to work with 2G device and not 4G LTE complaint device hence eligible for concessional rate of 10% basic customs duty [BCD] vide notification no. 57/2017 dated 30.06.2017.
Facts- The present appeal has been filed by One97 Communications Limited to assail the order dated 31.08.2022 passed by the Principal Commissioner of Customs, ACC (Imports), New Delhi, by which the concessional rate of 10% basic customs duty availed by the appellant under Serial No. 20 of the Notification No. 57/2017 dated 30.06.20174 for import of paytm soundbox Version 1 and Version 2 has been denied and the demand of Rs. 3,29,17,929/- has been confirmed u/s. 28(1) of the Customs Act, 1962 with interest u/s. 28AA and penalty u/s. 112(a) of the Customs Act.
Conclusion- The test reports submitted by both STS and ATH conclude that ‘paytm’ soundbox Version 1 is operating with 2G (GSM) signals and ‘paytm’ soundbox Version 2 is operating with 2G (GSM signals. Professor Saif Khan Mohammed, a technical expert in the field of wireless communication and a Professor in the Department of Electrical Engineering at I.I.T. Delhi gave his opinion on the two reports submitted by STS and ATH. The Professor specifically stated that merely because ‘paytm’ device is able to transmit and receive signals in a certain frequency band used by a 4G LTE device does not indicate that it must be a 4G LTE complaint device.
