2010 (4) TMI 334 - AT - Customs

Cable- The dispute in this case relates to the imported cables for which the appellants are claiming exemption under Notification No. 21/02- Cus., dated 1-3-2002- S. No. 340. Held that-the appellants argues that there is a clarification from the supplier to the effect that 300 Volts is the break down voltage. However, the department has obtained a report from the Electronics Test and Development Centre, Jaipur established tinder STQC, Directorate of Information Technology, Government of India, Jaipur, which has certified that there is no break down observed at 300 Volts in respect of the impugned conductors. Hence, the submissions of the appellants to explain away 300 V indicated on the catalogue can not also be accepted. Thus appeal was rejected.

Summary

Issues involved:
Interpretation of exemption notification for imported cables with voltage specifications exceeding 80 Volts.

Analysis:

1. Interpretation of Exemption Notification:
The dispute in this case revolves around the interpretation of Notification No. 21/02-Cus., dated 1-3-2002, specifically Serial No. 340, which pertains to electric conductors for telecommunications with a voltage not exceeding 80 Volts. The department contends that the imported cables have a voltage exceeding 80 Volts, making them ineligible for the exemption. The authorities relied on reports from the Director and Head of the Department of Electrical Engineering, MBM Engineering College, J.N.V. University, Jodhpur, certifying that the cables withstood 250 Volts for five hours without damage. Additionally, the catalogue indicated a voltage of 300 Volts, further supporting the department's stance.

2. Supplier's Clarification and Testing Reports:
The appellant argued that the supplier clarified 300 Volts as the breakdown voltage, attempting to justify the discrepancy in voltage specifications. However, a report from the Electronics Test and Development Centre, Jaipur, established under STQC, Directorate of Information Technology, Government of India, certified that no breakdown occurred at 300 Volts for the impugned conductors. This conflicting information raised doubts about the actual voltage tolerance of the imported cables.

3. Decision and Conclusion:
After thorough consideration of all evidence and arguments presented, the Tribunal concluded that the appellants failed to establish their eligibility for the exemption claimed. Consequently, the orders rejecting the refund claim for the higher duty paid by the appellants were upheld, and all four appeals were dismissed. The Tribunal's decision was based on the inability of the appellants to substantiate their position regarding the voltage specifications of the imported cables, as supported by expert reports and testing results.