2021 (9) TMI 1052 - SC - Customs

Classification of goods - cellular telephones - classified under Tariff Heading 8525-20-17 of the Customs Tariff Act or not? - telephone LSP 340 imported would be entitled to the benefit of the exemption granted by Notification No. 21/2002- Cus dated 1.3.2002? - HELD THAT - The decision of this Court in the case of Tata Teleservices Limited 2005 (12) TMI 96 - SUPREME COURT , it cannot be said that the learned Tribunal has committed any error in allowing the appeals preferred by the respondents and holding that the respondents shall be entitled to the benefit of exemption in terms of serial no. 264 of the table to the Notification No.6/2002-CE dated 1.3.2002, Notification No. 21/2002-Cus dated 1.3.2002 as per serial no. 320 of the Table thereto and Notification No. 21/2005-Cus dated 1.3.2005. All these appeals deserve to be dismissed and are accordingly dismissed.

Summary

Issues:
Appeal arising from Customs, Excise & Service Tax Appellate Tribunal's judgment allowing exemption for CDMA-WLL telephones under specific notifications. Interpretation of whether CDMA-WLL telephones are classified as cellular phones for exemption eligibility.

Analysis:
The Supreme Court heard appeals stemming from the Customs, Excise & Service Tax Appellate Tribunal's decision favoring the respondents. The Tribunal allowed the appeals, determining that CDMA-WLL telephones by M/s Teracom Private Limited qualify as Cellular Phones for exemption under specific notifications. This decision overturned earlier orders denying exemption benefits to the respondents.

The respondents argued that the issue mirrored a previous case involving Tata Teleservices Ltd., where a similar exemption was granted to telephone LSP 340 under a specific notification. They contended that CDMA-WLL telephones should also be considered cellular phones, aligning with the exemption criteria specified in several notifications. The respondents emphasized that the Tribunal's ruling was consistent with the principles established in the Tata Teleservices Ltd. case.

The Additional Solicitor General did not challenge the respondents' arguments, acknowledging the precedent set by the Tata Teleservices Ltd. case. Consequently, the Supreme Court found no fault in the Tribunal's decision to grant exemption to the respondents based on the classification of CDMA-WLL telephones as cellular phones under relevant notifications.

Based on the precedent and the arguments presented, the Supreme Court dismissed all appeals, affirming the Tribunal's decision to grant exemption to the respondents. The Court concluded that the respondents were entitled to exemption benefits as per the specified notifications. No costs were awarded in light of the circumstances.