2003 (8) TMI 257 - AT - Central Excise

Summary

Issues:
1. Interpretation of Notification No. 506/86-Cus. for exemption of customs duty on specific computer equipment imports.
2. Classification of imported goods under different headings and their eligibility for duty exemption.

Issue 1: Interpretation of Notification No. 506/86-Cus.:
The appellant, a Small Scale Unit developing software, imported goods based on a Concessional Customs Duty Certificate (CCDC) issued by the Department of Electronics (DoE). The issue arose when additional duty was proposed due to alleged underpayment. The notification in question exempts specific computer equipment, software, and spares from customs duty, subject to DoE certification. The Tribunal clarified that only goods falling under specific headings mentioned in the notification are eligible for exemption. The Tribunal emphasized that the appellant's argument of goods being used as computer peripherals did not entitle them to the exemption. Approval from DoE alone does not suffice if the items do not fall under the specified headings. Therefore, the Tribunal found the appeal lacking merit and dismissed it.

Issue 2: Classification of Imported Goods:
The Tribunal examined the classification of various imported goods, including a Sound Mixer, Sony CD Player, Video Camera, Switcher, Video Enhancer, VCRs, Fax Machines, Photocopier, and Video Projector. None of these goods fell under the headings specified for exemption in the notification. The appellant's claim that the goods were essential for software production and used as computer peripherals was rejected. The Tribunal reiterated that entitlement to exemption must align with the specified headings in the notification. As the imported goods did not fall under the eligible headings, the appeal was dismissed for lacking merit.

In conclusion, the Tribunal upheld the decision to dismiss the appeal, emphasizing that the goods imported by the appellant did not qualify for the customs duty exemption as per the specific headings outlined in Notification No. 506/86-Cus. The judgment highlighted the importance of aligning imported goods with the criteria specified in exemption notifications to claim duty benefits.