2017 (1) TMI 1470 - AT - Customs

Classification of imported goods - Micro SD cards - applicability of Board s Circular No. 12/2012-Customs, dated 1st May, 2012 - Held that - the circular having clarificatory is beneficial to the assessee so, it is applicable with retrospective effect - reliance placed in the case of SUCHITRA COMPONENTS LTD. Versus COMMISSIONER OF CENTRAL EXCISE, GUNTUR 2007 (1) TMI 4 - SUPREME COURT OF INDIA - the matter remanded to the original authority to decide the issue de novo on merit but in the light of above clarificatory circular dated 1st May, 2012 - appeal allowed by way of remand.

Summary

Issues: Classification of imported micro SD cards under the Customs Tariff Act, 1975.

The judgment pertains to five appeals filed against the Order-in-Appeal by the Commissioner (Appeals) regarding the classification of imported micro SD cards. The appellant claimed classification under CTH 8523 51 00 of the Customs Tariff Act, 1975, as solid-state non-volatile storage devices assessed to Nil rate of CVD. The department disagreed and demanded duty, leading to the appeals. During arguments, the appellant's counsel referred to Board's Circular No. 12/2012-Customs, asserting that micro SD cards should be classified as Semiconductor media under CTH 8523 51. The counsel argued that the circular, being beneficial, should apply retrospectively, citing relevant Supreme Court precedents. On the contrary, the DR supported the lower authorities' decision.

The Tribunal analyzed the situation and concluded that the clarificatory nature of the circular warranted its retrospective application, following the Supreme Court's guidance on beneficial circulars. Citing precedents like Suchitra Components Ltd. v. CCE and Commissioner v. Mysore Electricals Industries Ltd., the Tribunal held that the circular's beneficial nature favored retrospective application. Therefore, the impugned order was set aside, and the matter was remanded to the original authority for a fresh decision considering the clarificatory circular dated 1st May, 2012. The appellant was granted an opportunity for a hearing, and additional evidence could be admitted as per the law. Consequently, all five appeals were allowed by way of remand.

In summary, the judgment addressed the classification issue of imported micro SD cards under the Customs Tariff Act, 1975. It emphasized the retrospective application of a beneficial clarificatory circular, overturning the department's decision and remanding the matter for a fresh assessment in light of the circular's provisions.