Dell International Services India Private Ltd. Vs Principal Commissioner of Customs (CESTAT Chennai)
CESTAT Chennai held that clearance of personal computers from Special Economic Zone [SEZ] to Domestic Tariff Area [DTA] cannot be automatically classified as imported for personal use under CTH 9804 90 00 without discharging burden of proof. Accordingly, classification based on assumption set aside and appeal is allowed.
Facts- M/s. Dell International Services India Private Ltd., the Appellant herein is engaged in the manufacture and sale of Information Technology products, namely Desktops, Laptops, Monitors etc. from their SEZ unit located at Kancheepuram, Tamil Nadu. The Appellant undertakes domestic sales from their SEZ unit to individuals in the Domestic Tariff Area (DTA).
After the Post clearance audit, the Audit Commissionerate was of the view that the subject goods removed from the SEZ unit to the DTA were misclassified under CTH 8471 30 10, 8471 50 00 and 8528 52 00. According to the Department, the subject goods merited classification under CTH 9804 90 00 since the subject goods were removed to individual customers in DTA for their personal use. Pursuant to this, the Department issued the Show Cause Notice demanding differential duty. Adjudicating Authority vide Impugned Order, confirmed the proposed demands in the SCN. Being aggrieved, the present appeal is filed.
