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TMI Blog2009 (5) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... on to establish nexus between the batteries and the export product to avail the exemption extended under Notification Nos. 79/95 and 203/92. In the circumstances we find that the appeal filed by the Revenue is devoid of merit. The appeal is rejected. - The consignments were allowed clearance granting exemption against DEEC licences after the importers produced a certificate from the Senior Technical Officer, NIC. As the certificate was to the effect that the batteries could find use in the manufacture of, among others, computers, the authorities consciously allowed the exemption. Therefore, the adjudicating authority rightly held that larger period could not be validly invoked to recover exemption availed by the importer. - C/404/2004 - 54 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the description of the imported batteries as alleged in the Show Cause Notice. The demand was on the basis that the batteries imported were not covered by the advance licences produced for obtaining the exemption from customs duty for the reason that the batteries imported could not be used in the export product namely, personal computers (PC). The Commissioner found that in response to queries raised by the officers of Chennai Customs House in connection with imports of such batteries, the officers of Customs had perused a certificate issued by the Senior Technical Officer of National Informatics Centre (NIC) to the effect that the batteries under import had the same characteristics as of those used in UPS, medical equipment, video came ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by BCL were not capable of use in the export product namely, PC/AT and PC/XT, personal computers. Therefore, they were not eligible for the benefit of exemption availed on their import. The Commissioner had followed a certificate issued by the Electronics Test and Development Centre, Bangalore which referred to 'PC System with built-in UPS battery' whereas the export product relevant to the issue was personal computer. In common parlance, computer system never included UPS; UPS was an add-on facility. After in-depth investigation the DRI had explained in the Show Cause Notice as to how the batteries under import did not have any nexus with the export product and were not capable of being used in the export product. The respondents had cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not be validly invoked to recover exemption availed by the importer. The adjudicating authority rightly held that there were PCs with built-in UPS on the basis of catalogue of Sunray Computers Pvt. Ltd. which supplied PC with built-in battery back up and the certificate of Department of Electronics dated 15-9-98 to the effect that the PC was with built-in UPS. The Notifications in question allowed duty-free import of inputs which are capable of use in the export product. Relying on certificates issued by the technical experts in the field, the adjudicating authority concluded that the impugned batteries were capable of use in personal computers which were the export products specified in the advance licences transferred in the name of B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licensed final product. We find that the input allowed to be imported for the export product personal computers AT/XT is 'battery' as per the Standard Input Output Norms (SION) in force at the material time as recorded in the impugned order. The impugned goods are undisputedly batteries. As per the ratio of the judicial authorities cited by BCL, who imported batteries against advance licences purchased by it after the original importer had fulfilled the export obligation was under no obligation to establish nexus between the batteries and the export product to avail the exemption extended under Notification Nos. 79/95 and 203/92. In the circumstances we find that the appeal filed by the Revenue is devoid of merit. The appeal is rejected. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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