Case Law Details
In re Socomec India Private Limited (CAAR Delhi)
Recent ruling by the Customs Appellate Authority for Advance Rulings (CAAR) in Delhi concerning the classification and exemption of Uninterrupted Power Supply (UPS) under Notification No. 25/2005.
Applicant’s View and Applicability of Notification: The applicant believed that the UPS they intended to import should be classified under Sub-heading 85044090 based on judicial pronouncements and CBIC Circular No. 104/2003-Cus. They sought to ascertain the applicability of serial number 4 of Notification No. 25/2005 on the import of UPS.
Interpretation of Notification: After careful examination of the application, comments from the concerned Commissioner, additional submissions, and the personal hearing, it was noted that the exemption from duties under Notification No. 25/2005 applies only to static converters for automatic data processing machines and telecommunication apparatus (excluding static converters for cellular mobile phones). The applicant’s argument that the UPS could be considered within the scope of the notification was found to be unfounded.
Information Technology Agreement (ITA) and Exemption: The explanatory letter and provisions of the ITA indicated that the Notification No. 25/2005 was issued to give effect to the ITA of the World Trade Organization. The agreement covers automatic data processing machines for specific functions, and machines performing other functions or working in conjunction with data processing machines are not covered. The interpretation of the notification should align with the provisions of the ITA.
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