2024 (1) TMI 462 - AT - Customs

Benefit of exemption from customs duty - Notification No. 25/2005-CUS dated 01.03.2005 at Sl.No.29 for the item Patch Cord imported - Denial of benefit on the ground that the operating voltage should be more than 80 volts and the imported good operate only at 72 volts - HELD THAT - The Commissioner (Appeals) has observed that the imported product would operate only at 72 volts and that to the eligible for the benefit of the Notification, the product has to be operational in between 80V and 1000v. It requires to be mentioned that the Notification does not mention AC or DC voltage. However, the imported product specification mentions DC voltage. The ISO specification of 11801-1 extracted above, shows that the minimum operating voltage of such product is 72 volts. This is Direct Current and when converted into alternate current (AC) it would be 101. Thus, the minimum operating voltage of the product is definitely above 80 volt AC. So also, the maximum operating voltage is 300. The product thus falls within the operating voltage mentioned at Sl.No.29 of the Notification. We therefore are convinced that the goods are eligible for the benefit of the Notification. The impugned order is set aside - The appeal is allowed.

Summary

Issues involved:
Interpretation of Notification No. 25/2005-CUS regarding operating voltage eligibility for benefit.

Details of the judgment:

1. The appellant imported goods declared as 'Patch Cord' and claimed benefit under Notification No. 25/2005-CUS. The department contended that the goods' operating voltage of 72 volts did not meet the required 80 volts specified in the Notification. The original authority denied the benefit, which was upheld by the Commissioner (Appeals), leading to this appeal.

2. The appellant argued that the denial was based on an erroneous interpretation of the Notification. They highlighted compliance with ISO standards and the product's operating voltage of 72 volts, which, when converted to AC, exceeded the 80-volt threshold specified in the Notification.

3. The product specifications indicated a safety voltage rating of 300V, demonstrating capability above the required 80 volts AC. The appellant's counsel emphasized that the Notification did not specify AC or DC voltage, and converting the 72 volts DC to AC resulted in 101 volts, meeting the eligibility criteria.

4. The Tribunal noted that the product's minimum operating voltage of 72 volts DC, when converted to AC, exceeded 80 volts, making it eligible for the Notification's benefit. Additionally, the maximum operating voltage of 300V further supported the product falling within the specified range. Consequently, the appeal was allowed, setting aside the impugned order.

(Order dictated and pronounced in the open court)