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TMI Blog2019 (12) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... o relation to parts or components because it cannot be doubted that battery chargers, PC connectivity cables, memory cards and hands-free headphones of mobile handsets are not parts or components of mobile handsets and are accessories. If that be so, mobile phone battery is a part or component of the mobile handset because without a battery, the mobile handset cannot function. Such being the position, the Commissioner fell an error in concluding that the mobile phone battery would not be entitled to the benefit of the General Exemption Notification dated 01 March, 2011. The imposition of penalty or interest, therefore, also cannot be sustained. LED Bulbs - HELD THAT:- The Appellant is not contesting the finding recorded by the Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and LED Bulb and could not have availed the benefit of the General Exemption Notification No. 46 dated 01 March, 2011 for payment of 2% ad valorem duty on mobile phone battery nor could the Appellant have availed the benefit of General Exemption Notification No. 50 dated 17 March, 2012 for LED Bulb. Accordingly, a show cause notice dated 22 May, 2017 was issued to the Appellant. The Appellant filed a detailed reply dated 28 June, 2017. The contentions of the Appellant were not accepted by the Commissioner and the order dated 31 January, 2018 was passed by the Commissioner confirming the demand. 3. It needs to be stated that there is a short payment of duty on clearance of mobile battery to the extent of ₹ 2,12,34,792/- and on LED ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or service tax on input services has been taken by the manufacturer of such goods (and not the buyer of such goods), under the provisions of the CENVAT Credit Rules, 2004. 132 Any Chapter Parts, components and accessories namely, battery chargers, PC connectivity cables, memory cards and hands-free headphones of mobile handsets. Explanation - For the purposes of this entry, mobile handsets include cellular phones. 4. According to the Commissioner, the benefit of the aforesaid Notification would be available only for battery chargers, PC connectivity cables, memory cards and hands-free headphones of mobile handsets since these four items have been specifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave no connection with parts or components mentioned in the earlier part of the Notification and since battery would be a part of the mobile handset, it would clearly be entitled to the benefit of the General Exemption Notification. In this connection, learned Counsel also placed reliance upon the Circular dated 06 February, 2019 of the Central Board of Excise Customs wherein phone battery has been held to be entitled to the benefit of Customs Duty Exemption, which Notification is similarly worded and phone battery has not been treated as an accessory of a mobile handset. 8. Learned Counsel, however, fairly stated that the Appellant is not pressing the appeal in regard to the imposition of duty on LED bulbs. 9. Learned Authorised Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excisable goods leaves no manner of doubt that the aforesaid qualify accessories only and have no relation to parts or components because it cannot be doubted that battery chargers, PC connectivity cables, memory cards and hands-free headphones of mobile handsets are not parts or components of mobile handsets and are accessories. If that be so, mobile phone battery is a part or component of the mobile handset because without a battery, the mobile handset cannot function. Such being the position, the Commissioner fell an error in concluding that the mobile phone battery would not be entitled to the benefit of the General Exemption Notification dated 01 March, 2011. The imposition of penalty or interest, therefore, also cannot be sustained. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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