2015 (1) TMI 19 - AT - Customs

Import of mobile for software development - Notification No. 52/03-Cus., dated 31-3-2003 - Exemption from custom duty being prototype or a technical sample for each of the existing products - Held that - Appellant was given procurement certificate by the Customs authorities on 1-2-2008 allowing Nokia N25 mobile phones to be cleared duty free. Similarly there is also a copy of certificate on record issued by STPI to make import of the goods duty free. That certificate relates to invoice No. 991315, dated 22-1-2008 (copy of which is available at page 14 of appeal folder). Co-relation of these documents indicates that the goods imported were meant for software development. - Decided in favour of assessee.

Summary

Issues:
1. Whether the imported mobile phones were exempt from customs duty under Notification No. 52/03-Cus. for software development purposes.
2. Whether the imported goods could be covered under Serial No. 12 or Serial No. 17 of Annexure 1 to the said notification.

Analysis:
1. The appellant argued that the mobile phones imported were for software development and thus should be exempt from customs duty under Notification No. 52/03-Cus. Specifically, they claimed that the goods fell under the exemption for prototypes or technical samples for product diversification, development, or evaluation as per Serial No. 12 of Annexure 1 to the notification.

2. Alternatively, the appellant contended that if the goods did not qualify under Serial No. 12, they should be covered under Serial No. 17 of Annexure 1, which pertains to "Any other item required in relation to production of export goods with the prior approval of the Board of Approval."

3. The revenue supported the adjudication, indicating that duty should be imposed on the imported goods. After hearing both sides and examining the records, the tribunal analyzed the relevant serial numbers from Annexure 1 of the notification to determine the applicability of the exemptions claimed by the appellant.

4. The tribunal noted that the appellant had been issued procurement certificates by Customs authorities and STPI, indicating that the imported Nokia N25 mobile phones were indeed intended for software development. The certificates and documents on record supported the appellant's claim that the goods were meant for software development purposes, leading to the conclusion that the appeal was allowed with any consequential relief admissible to the appellant as per the law.

In conclusion, the judgment favored the appellant, recognizing the exemption from customs duty for the imported mobile phones intended for software development, as supported by the relevant certificates and documentation provided.