2016 (12) TMI 1388 - AT - Central Excise

Classification of goods - Integrated Fixed Wireless Terminals CDMA-2000-1X (ETS 2288) - whether appellant is eligible to avail benefit of exemption notification no.6/2003-CE (Sr.no.264) for the CDMA WLL phones manufactured by them? - Held that - the issue is no more res Integra. In the case of identically placed manufacturer from the same commissionerate, this bench in the case of Teracom pvt. Ltd. 2007 (10) TMI 47 - CESTAT, MUMBAI going in to details as to how CDMA WLL and cellular phones functions, came to a conclusion that benefit of notification 6/2002-CE needs to be extended as the CDMA WLL phones function on cellular technology - The appellant assessee is eligible for benefit of exemption notification no. 6/2003-CE (sr.no.264) for the CDMA WLL phones cleared by them - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Eligibility of the appellant to avail the benefit of exemption notification no. 6/2003-CE for the CDMA WLL phones manufactured by them.

Analysis:
The appeal was filed against Order-in-Original No. 08/Commissioner/Goa/CX/2007 dated 30.03.2007, concerning the classification and exemption eligibility of CDMA WLL phones manufactured by the appellant under Chapter heading no. 8525 2019 of the Central Excise Tariff Act, 1985. The Revenue contended that these phones were not cellular phones and thus not eligible for exemption. The main issue revolved around whether the appellant could avail the benefit of exemption under notification no. 6/2003-CE (Sr.no.264) for the CDMA WLL phones they produced.

The appellant's counsel relied heavily on a previous decision by the bench in the case of Teracom Private Ltd. and a CBEC circular to support their argument. Conversely, the Departmental Representative supported the Adjudicating Authority's findings that CDMA WLL phones were distinct from cellular phones. The Adjudicating Authority had classified the phones under CETA 8525.20.19 and denied the exemption, emphasizing the differences between CDMA WLL phones and cellular phones.

The Tribunal examined the case records and arguments from both sides. It noted that a similar manufacturer from the same commissionerate had been granted the benefit of exemption under notification 6/2002-CE for CDMA WLL phones based on their functioning on cellular technology. The Tribunal referenced the decision in the case of Teracom Pvt. Ltd. and a CBEC circular, highlighting that CDMA WLL phones operating on cellular technology should be eligible for exemption, as supported by the Supreme Court's decision in a related matter.

Based on the precedents and the Supreme Court's ruling, the Tribunal concluded that the appellant was indeed eligible for the benefit of exemption notification no. 6/2003-CE (Sr.no.264) for the CDMA WLL phones manufactured by them. Consequently, the appeal was allowed in favor of the appellant.

This detailed analysis of the judgment showcases the consideration of legal precedents, technical aspects, and statutory provisions in determining the eligibility of the appellant for the exemption benefit, providing a comprehensive overview of the decision-making process by the Tribunal.