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TMI Blog2018 (1) TMI 1182X X X X Extracts X X X X X X X X Extracts X X X X ..... 06.2007 for clearance of one Unit of "9.3 Meter Compact Cassegrain Antenna Sub-system - Model 9.3 KPK" [hereinafter referred to as "CC-AS"] classifying it under CTH 85291019 with declared assessable value of Rs. 68,11,430/- and claiming duty benefit under Customs Notification No.25/2005 [Sl.No.15] as or 'aerials' or 'antennae' of a kind used for 'radio-telephony' and 'radio-telegraphy'. It appeared from scrutiny of the import documents, that goods imported were "Sub-systems" and not "Antenna'. It further appeared that the goods were for, television broadcast and not for 'radiotelephony' or 'radio-telegraphy' and hence not eligible for Customs Notification No.25/2005, since that was applicable only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firming denial of benefit of Customs Notification No.21/2002-Cus dated 01.03.2002 to the imported goods and confirming demand of differential duty of Rs. 43,03,619/-. Enhancement of value was made by addition of notional freight and insurance at the rate of 20% and 1.125% respectively to the F.O.B. value under Rule 9 (2) of CVR, 1988. Hence, appeal no.C/40506/2015. 4.0 On 04.08.2017, when these appeals came up for hearing, on behalf of the appellants, learned advocate Shri Hari Radhakrishnan made oral and written submissions, which can be summarized as under:- 4.1 In appeal no C/00228/2008, benefit of Notification No.25/2005 [Sl.No.15] has been denied on the ground that appellants had imported 'Antenna Sub-system' used in television b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cate before the Commissioner (Appeals). However, that has not been considered and value has been enhanced unilaterally. 6. On the other hand, learned Authorised Representative supports the impugned orders. 7. Heard both sides and we have gone through the facts. 8.1 We, first intend to take-up the dispute in respect of appeal no.C/00228/2008. The adjudicating authority has denied the benefit of Notification No.25/2005 [Sl. No.15] on the grounds that the goods imported are 'Antenna Sub-systems" used for television broadcasting purpose and not those used for i telephony' and 'telegraphy'. In this regard, we find that the lower authority has analyzed the technical aspects concerning frequencies used for radio and television broad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ku band satellites are also used for backhauls and particularly for satellite from the remote locations back to a television network's studio for editing and broadcasting. 8.2 From the catalogue produced by the importer and from the website of the supplier, it was found that the CGAS are designed for 3.4 to 15 Giga Hertz. frequency operation and the minimum frequency used for downlink is 3.625 Giga Hertz. and the maximum frequency used for unlinking is 14.500 Giga Hertz. 8.3 In the event, the adjudicating authority has correctly concluded that the subject imported goods cannot be considered as 'of a kind used in the apparatus for 'radio telephony' and 'radio telegraphy,' leave alone the issue of whether the goods are & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e most, would have justified such confiscation even if they had been physically unavailable. This, however, is not the case. In the event, we have no hesitation in setting aside that part of the impugned order confiscating the goods under the Customs Act and imposing fine of Rs. 15,00,000/-under section 125 (1) ibid in lieu of confiscation. 8.7 It is also an admitted fact that the entire dispute relates to one of interpretation on the type of radio/broadcasting frequencies that can be handled by the imported goods. In fact, as already discussed herein above, even the adjudicating authority had to go to great technical depths to arrive at the correct nature of the imported goods for the purpose of denying the notification benefit. In this f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hearing had contended that the 'antenna 9.3 meters' is imported in knocked down condition and re-assembled as a completed Unit at their site. Appellants also pointed out the hubs in 'antenna' are the centre part of the 'antenna' holding the ribs of the antenna. However, none of these conditions have been addressed by the original authority or even by the lower appellate authority in the impugned order. No technical opinion of an expert in the field has been brought out by the department to support their contention that the imported item is only 'sub-assembly' and not the full 'antenna.' In view thereof, denial of the benefit of the Notification No.21/2002, dated 01/03/2002 [Sl.No.244] to the imported items on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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