2013 (10) TMI 1051 - AT - Customs

Benefit of Notification NO. 25/99-Cus - Import of CD Pick up lens unit - Held that - According to the respondent the goods when imported are for actual use of the respondent to make CD mechanism those were parts thereof only. - assessee relied upon its own case 2008 (8) TMI 269 - CESTAT NEW DELHI . It is necessary to examine the description of the goods in all the bills of entry individually as enumerated in annexure A to the show cause notice dated 4.6.2004 to reach to the conclusion as to whether the goods so imported by the respective bills of entry were parts of CD deck mechanism or otherwise as well as the motive behind the imports. - Decided in favour of Revenue.

Summary

Issues:
1. Applicability of Notification No. 25/99-Cus dated 28.2.1999 for goods imported through various bills of entry.
2. Revenue's grievance against dropping of adjudication proceedings and grant of relief to the respondent.
3. Discrepancy in the nature of goods imported - whether parts of CD mechanism or complete CD mechanism.
4. Allegations of mis-declaration in import of CD-Deck Mechanisms.
5. Examination of goods imported to ascertain if they qualify as parts of CD deck mechanism.
6. Interpretation of the Department of Information & Technology's clarification on parts of CD mechanism.
7. Examination of goods in bills of entry to determine if they were parts of CD deck mechanism.
8. Application of the Department of Information & Technology's test to resolve the dispute.

Analysis:
1. The judgment revolves around the dispute concerning the applicability of Notification No. 25/99-Cus dated 28.2.1999 to goods imported through various bills of entry. The appellant claimed entitlement to the notification's benefits, which the Revenue contested, leading to adjudication proceedings.
2. Revenue's objection was primarily against the dropping of adjudication proceedings and the relief granted to the respondent by the Adjudicating Authority based on the interpretation of the notification's provisions.
3. The discrepancy arose regarding the nature of goods imported, with the respondent claiming they were parts of a CD mechanism, while Revenue alleged mis-declaration, stating that the entire CD mechanism was imported under the guise of parts.
4. The Revenue highlighted instances of mis-declaration in the import of CD-Deck Mechanisms, leading to the issuance of Circular No. 71/2003-Cus to prevent the misuse of concessional duty benefits under the notification.
5. The examination of the imported goods was crucial to determine if they qualified as parts of a CD deck mechanism, with the Adjudicating Authority emphasizing the physical characteristics required for goods to be classified as such.
6. The Department of Information & Technology's clarification on parts of CD mechanism played a significant role in the case, defining the specific constituents that, when assembled, constituted a finished CD deck mechanism.
7. The examination of goods in the bills of entry was necessary to establish whether they indeed qualified as parts of a CD deck mechanism, requiring a detailed analysis of each entry to ascertain the nature of the imported goods.
8. To resolve the dispute effectively, the judgment recommended applying the test suggested by the Department of Information & Technology to determine if the imported goods met the criteria to be classified as parts of a CD deck mechanism, directing the matter back to the Adjudicating Authority for further examination and a fair hearing.