2013 (1) TMI 475 - AT - Customs

Benefit of notification - Appellant is a 100% EOU - Appellant imported Mineral fiber sound absorbing sheet - Fire detection alarm system - Claim benefit of Notification No. 140/91-Cus., dated 22-1-1991 Held that - Notification grants exemption to modular furniture. In respect of Mineral Fiber sound absorbing sheet are cut to sizes and they are used as false ceiling. False ceiling is necessary furniture to an office space to make it habitable and functional and therefore imported items falls under the definition of Modular Furniture and applicant is entitled for customs duty exemption. In favour of assessee Fire Detection Alarm System - Held that - Automatic monitoring and alarm operations take place without the intervention of an operator. This provides protection to occupants and building. The functionality of the product surpasses the domain of safety system and it enhances the security functions for the building of CTS, that the infrastructure; protection of the CTS is enhanced by installation of the said device. Security system is genus and fire-fighting is a specie therefore we find that fire-fighting system qualify for the benefit of the Notification. In favour of assessee

Summary

Issues:
1. Eligibility of Mineral fibre sound absorbing sheet for customs duty exemption under Notification No. 140/91-Cus.
2. Eligibility of Fire detection alarm system for customs duty exemption under Notification No. 140/91-Cus.

Analysis:

Issue 1:
The appellant, a 100% EOU, imported Mineral fibre sound absorbing sheets and claimed customs duty exemption under Notification No. 140/91-Cus. The Commissioner denied the benefit, stating that the sheets were not covered under the notification. The appellant argued that the sheets, used as false ceiling material, fell under the definition of Modular Furniture. The Tribunal considered the definition of furniture from Black's Law Dictionary and Law Lexicon. It was noted that the sheets, when used as false ceiling, were necessary furniture for an office space, making it habitable and functional. Therefore, the imported items were deemed eligible for the customs duty exemption under the notification.

Issue 2:
Regarding the Fire detection alarm system, the appellant claimed customs duty exemption under the same notification. The Tribunal observed that the system operated automatically without the need for human intervention, enhancing building security functions. The functionality of the system surpassed that of a safety system, providing protection to occupants and buildings. Referring to the I.T. Security Policy guidelines, it was established that fire detection alarm systems were part of the security system. The Tribunal concluded that the system qualified for the customs duty exemption under the notification. The Commissioner's order denying eligibility for both items was set aside, and the appeal was allowed with consequential relief as per the law.