9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (5) TMI 477 - AT - CustomsDemand of Anti-Dumping Duty in respect of imports of CFL contention of revenue that the parts imported by the appellants constitute 90% of the total requirement of manufacture of CFL and in terms of provisions of Rule 2(a) of Interpretative Rules to be treated as complete lamps - Held that - It is not appropriate inasmuch as the provisions of Rule 2(a) of the Interpretative Rules are in the form of a legal fiction created for the limited purpose of classification of incomplete or unfinished article in relation to any reference in a heading to an article in schedule and cannot be used to modify physical identity of an article mentioned in notification imposing a duty on that article, which has to be interpreted strictly - The Directorate General of Anti Dumping and Allied Duties have clarified that anti-dumping duties were not recommended on parts/ components of CFL - the notification No. 138/2002-Cus., dated 10-12-2002 stated that the anti-dumping was recommended only in respect of two types of CFLs (i) Complete, ready to use compact fluorescent lamps wherein choke is integrated within the lamp (ii) Complete, ready to use compact fluorescent lamps wherein choke is external - Admittedly in the present case, the appellants have not imported CFLs, in a ready to use condition but have only imported parts of the same in favour of assessee.
Issues:
1. Applicability of Anti-Dumping Duty on imports of parts of CFL. 2. Interpretation of Notification No. 138/2002-Cus. dated 10.12.02. 3. Classification of goods under Rule 2(a) of the General Rules for interpretation of First schedule to the Customs Tariff Act, 1975. 4. Previous adjudication on Anti-Dumping Duty. 5. Effect of Board's circulars and Ministry of Commerce clarifications on the issue. Issue 1: Applicability of Anti-Dumping Duty on imports of parts of CFL: The case involved a small scale unit manufacturing CFLs availing area-based exemption. The dispute was regarding the imposition of Anti-Dumping Duty on imports of various parts of CFL. The Revenue issued a show cause notice confirming the demand of duty on the imports made by the appellants, which was upheld on the grounds that the imported goods constituted CFL in completely knocked down condition. However, the Tribunal, in previous proceedings, had set aside the confirmation of Anti-Dumping Duty and penalty. The issue was whether the duty was applicable to parts of CFL or only on complete lamps. Issue 2: Interpretation of Notification No. 138/2002-Cus. dated 10.12.02: The Notification imposed Anti-Dumping Duty on CFLs imported from specific countries. The controversy arose as to whether this duty applied to parts/components of CFLs or only to complete, ready-to-use lamps. The Tribunal referred to various circulars and decisions clarifying that the duty did not extend to parts of CFLs, but only to complete lamps. The Ministry of Commerce and Ministry of Finance had issued circulars specifying that Anti-Dumping Duty was not leviable on parts/components of CFLs. Issue 3: Classification of goods under Rule 2(a) of the General Rules: The dispute involved the classification of imported goods under Rule 2(a) of the General Rules for interpretation of the Customs Tariff Act. The Revenue argued that the imported parts, when assembled, constituted a CFL and should be classified as such. However, the Tribunal held that the legal fiction created by Rule 2(a) could not modify the physical identity of the goods mentioned in the notification imposing the duty, which had to be interpreted strictly. Issue 4: Previous adjudication on Anti-Dumping Duty: Prior to the present proceedings, the appellants were issued a show cause notice for earlier imports, resulting in the confirmation of Anti-Dumping Duty. However, on appeal, the Commissioner (Appeals) set aside the duty and penalty. The Revenue's appeal against this decision was dismissed by the Tribunal. This history of adjudication was relevant in understanding the context of the current dispute. Issue 5: Effect of Board's circulars and Ministry of Commerce clarifications: The Tribunal considered various circulars and clarifications issued by the Ministry of Commerce and Ministry of Finance, which emphasized that Anti-Dumping Duty was not applicable to parts/components of CFLs, but only to complete lamps. These circulars and clarifications played a crucial role in the Tribunal's decision to reject the Revenue's appeal and set aside the duty imposed on the appellants' imports. In conclusion, the Tribunal, based on the interpretations of relevant notifications, circulars, and legal precedents, held that Anti-Dumping Duty was not leviable on the parts of CFLs imported by the appellants. The decision was supported by the legal principles governing the classification of goods and the specific provisions of the Anti-Dumping Duty notifications. The Tribunal's ruling provided consequential relief to the appellants, setting aside the duty and penalty imposed on them.
|
