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2021 (6) TMI 628 - AT - CustomsJurisdiction - proper officer for issuance of SCN - DRI is proper officer or not - Classification of imported goods - External/Portable Hard Disc Drives - classifiable under CTH 84717020 as Hard Disc Drive or under Tariff Item 84717030 as Removable Disc Drive ? - HELD THAT - Hon ble Supreme Court in the matter of COMMISSIONER OF CUSTOMS, NEW DELHI VERSUS M/S SUPERTRON ELECTRONICS PVT. LTD. 2017 (10) TMI 1281 - SC ORDER has laid down that Additional Director General, DRI cannot be said to be a proper officer under section 2(34) of Customs Act, 1962 and held that the entire proceedings initiated by ADG, DRI by issuing various show cause notices are invalid without any authority of law and liable to be set aside. In the instant case also the show cause notice was issued by the Additional Director General, DRI under Section 28 ibid, which as per the aforesaid decision of the Hon ble Supreme Court is without any authority of law and therefore the Appeals also deserve to be allowed on this ground itself.
Issues Involved:
Classification of External/Portable Hard Disc Drives under CTH 84717020 as 'Hard Disc Drive' or under Tariff Item 84717030 as 'Removable Disc Drive'. Analysis: Issue 1: Classification of External/Portable Hard Disc Drives The dispute in this case revolves around the classification of External/Portable Hard Disc Drives. The Appellants classified these drives under CTH 84717020 as 'Hard Disc Drive', while the department argued that they should be classified under Tariff Item 84717030 as 'Removable Disc Drive'. The impugned order upheld the department's classification under CTH 84717030. The Appellants were accused of evading customs duty by mis-declaring the drives to avail exemptions. A show cause notice was issued, and the Principal Commissioner confirmed the classification and demanded differential duty, interest, penalty, and goods' confiscation. Issue 2: Legal Precedents and Arguments The Appellants relied on the Tribunal's decision in Commr. of Customs, New Delhi vs. Supertron Electronics P. Ltd., which was upheld by the Supreme Court. They argued that subsequent Tribunal decisions supported their classification under CTH 84717020. The Authorised Representative, however, supported the impugned order's findings and sought dismissal of the Appeal. Issue 3: Tribunal's Analysis and Decision The Tribunal considered the case records, relevant case laws, and the decision in Supertron Electronics. The Tribunal analyzed the technical specifications, exemption notifications, and expert opinions. It noted that the exemption notification covered both hard disk drives and removable or exchangeable disk drives under 847170. The Tribunal found that the drives in question were hard disk drives meant for external use, not removable or exchangeable drives. It upheld the classification under CTH 84717020, granting the Appellants' classification as correct based on the technical specifications and expert opinions. Issue 4: Validity of Show Cause Notice The Tribunal referenced a recent Supreme Court decision regarding the authority of Additional Director General, DRI, under the Customs Act, 1962. The Supreme Court held that proceedings initiated by ADG, DRI, were invalid without proper authority. In this case, the show cause notice issued by ADG, DRI, was deemed invalid, leading to the Appeals being allowed on this ground. Conclusion The Appeals filed by the Appellants were allowed with consequential relief, emphasizing the correct classification of External/Portable Hard Disc Drives under CTH 84717020 as 'Hard Disc Drives'. The Tribunal's decision was based on a thorough analysis of technical specifications, legal precedents, and the invalidity of the show cause notice issued by ADG, DRI, in line with recent Supreme Court rulings.
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