2007 (5) TMI 381 - AT - Customs

Demand - Anti-dumping duty - Confiscation and penalty - Mis-declaration of goods - whether the parts of CFL would in itself be liable for imposition of anti-dumping duty?

Summary

Issues: Mis-declaration of imported goods, imposition of anti-dumping duty on compact fluorescent lamps (CFL) parts, confiscation of goods, penalty imposition.

Detailed Analysis:

1. Mis-declaration of Imported Goods:
The appellant company imported "glass parts of lamp making electronic parts for lamp making" from China. The authorities alleged mis-declaration as the goods were considered to be of Chinese origin and potentially subject to anti-dumping duty. The appellant contested this, stating they imported only parts, not complete CFLs. The adjudicating authority disagreed, leading to a Show Cause Notice and subsequent appeal.

2. Imposition of Anti-Dumping Duty on CFL Parts:
The appellant argued that the imported parts did not constitute a complete CFL, requiring further processing with additional inputs to become one. They cited relevant notifications and case law to support their position that anti-dumping duty should only apply to complete CFLs, not individual parts. The Tribunal noted that the goods imported were not "ready to use" CFLs, as per the office memorandum, and thus not liable for anti-dumping duty.

3. Confiscation of Goods and Penalty Imposition:
The Tribunal observed that the charge of mis-declaration failed, leading to the set-aside of confiscation of goods and consequent penalties imposed on the appellants. As the imported items were correctly declared as parts/components of CFLs, the Tribunal ruled in favor of the appellant, allowing the appeal and providing consequential relief.

4. Judicial Precedents and Office Memorandum:
The Tribunal referenced previous judgments, including the case of Philips India Ltd., to support its decision that anti-dumping duty should only be imposed on complete CFLs, not individual parts. The Office Memorandum clarified that anti-dumping duties were not recommended on parts/components of CFLs, further strengthening the appellant's argument against duty imposition on imported parts.

In conclusion, the Tribunal set aside the impugned order, allowing the appeal and providing relief to the appellant based on the lack of evidence supporting the imposition of anti-dumping duty on the imported CFL parts. The judgment emphasized the importance of distinguishing between complete CFLs and individual parts when applying anti-dumping regulations.