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TMI Blog2025 (1) TMI 858X X X X Extracts X X X X X X X X Extracts X X X X ..... (iv) of the amended N/N. 24/2005 applies solely to products combining MIMO technology and LTE standards, and thus, the WAPs imported by the respondent, which employ MIMO technology but not the LTE standards, are entitled to the exemption from Basic Customs Duty. Conclusion - The WAPs imported by the respondent, which employ MIMO technology but not LTE standards, qualify for the customs duty exemption under Serial No. 13 (iv) of the amended N/N. 24/2005. The order of the learned CESTAT does not suffer from any infirmity or error and, is, therefore upheld - Appeal dismissed. - HON BLE THE ACTING CHIEF JUSTICE VIBHU BAKHRU AND HON BLE MS. JUSTICE SWARANA KANTA SHARMA For the Appellant Through: Mr Akshay Amritanshu, Senior Standing Counsel with Mr Samyak Jain, Ms Drishti Safar and Ms Pragya Upadhyay, Advocates. For the Respondent Through: Mr Srinivas Kotni and Mr Shyam Kishor Maury, Advocates. JUDGMENT SWARANA KANTA SHARMA, J. INTRODUCTION 1. The Revenue has preferred the present appeal under Section 130A of the Customs Act, 1962 [hereafter the Act ] read with Section 174 of the Central Goods and Services Tax Act, 2017, impugning the order dated 30.10.2023 [hereafter the impugned or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2005-Cus. dated 01.03.2005 [hereafter Notification No. 24/2005 ], the Central Government had exempted certain goods from the whole of customs duty leviable thereon, on their import into India. This included exemption to goods imported under CTH 8517. The relevant extract of the said notification is set out below: Notification No. 24/2005-Customs New Delhi, dated the 1st March, 2005 10 Phalguna, 1926 (Saka) G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the following goods, falling under the heading, sub-heading or tariff-item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and specified in column (2) of the Table below, when imported into India, from the whole of the duty of customs leviable thereon under the said First Schedule, namely:- Table S.No. Goods falling under Heading, Sub-heading or Tariff item (1) (2) 1. 3818 00 2. 8456 91 00, 8469 11 00, 8470, 8471, 8473 21 00, 8473 29 00, 8473 30, 8473 50 00 3. 8517, 8520 20 00, 8523 (other than those falling under tariff item 8523 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investigation, the Additional Director General of the DRI issued a Show Cause Notice ( SCN ) dated 09.10.2018, under Sections 28 and 124 of the Act. The SCN called upon the respondent to explain why the exemption benefit claimed under the notification should not be denied. The SCN noted that the exclusion entry (iv) of Serial No. 13 in the amended Notification No. 24/2005, which mentions MIMO and LTE products , should be interpreted to deny exemptions to all products operating on either MIMO or LTE standards. It was also mentioned that there are only two types of products in exclusion entry (iv) and the conjunctive and has been used without using the term product for both the items. It was further the Revenue s case that in case the purpose was to apply the said condition on the products having both MIMO technology and LTE standards and, therefore, Serial No. 13 (iv) should have read as LTE products having MIMO technology or LTE products with MIMO technology . The SCN also noted that between the words MIMO and LTE , the word and is placed, however, it is not followed by a comma. Reliance was placed on the decision in Sree Durga Distributors v. State of Karnataka: 2007 (212) ELT 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of M/s Brightstar Telecommunications India Ltd.: a) The Access Points imported by M/s Brightstar Telecommunications India Ltd. are classifiable under 85176290 of the Customs Tariff. Since these Access Points are having MIMO technology but without LTE standard, the Basic Customs Duty (BCD) exemption claimed under Notification No. 24/2005-Cus dated 01/03/2005 as amended vide Notification No. 11/2014-Cus dated 11.07.2014 is allowed to them. b) I do not hold the impugned goods imported by them liable for confiscation under Section 111(m) of the Customs Act, 1962. Therefore, I do not confiscate the same. c) The demand of differential Customs duty on the impugned goods imported by them during the period from 11.07.2014 lo 30.06.20l7 is hereby dropped. d) I do not impose any penalty on M/s Brightstar Telecommunications India Ltd. under Section 112/ 114A/ 114AA of the Customs Act, 1962. 2. I do not impose any penalty under Section 112/114AA of the Customs Act, 1962 on Shri Ranbir Bhandari, DGM, Supply Chain Manager of M/s Brightstar Telecommunications India Ltd. 12. Aggrieved by the aforesaid order, the Revenue filed an appeal (Customs Appeal No. 51875 of 2021) before the learned CESTA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e accepted. 20. It needs to be remembered that 'and' is a conjunctive and is used to connect and join. The dictionary meaning of 'and' is as follows. The New International Webster's Comprehensive Dictionary of the English Language: And: Also; added to; as well as; a particle denoting addition, emphasis, or union, used as a connective between words, phrases, clauses, and sentences; shoes and ships and sealing wax... Or: Introducing an alternative: stop or go: red or white. Oxford Dictionary of English, Third Edition: And: Used to connect words of the same part of speech, clauses or sentences, that are to be taken jointly; bread and butter they can read and write a hundred and fifty. Or: Used to link alternatives: a cup of tea or coffee are you coming or not either take taxis or walk everywhere... Collins Cobuild English Dictionary for Advanced Learners: And: You can use and to link two or more words, groups, or clauses. When he returned, she and Simon had already gone... Or: You can use 'or' to link two or more alternatives. Tea or coffee?... Cambridge Advanced Learners Dictionary, Fourth Edition: And: Used to join two words, phrases, parts of sentences, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion ITA. 23. Though it is correct that clause (iv) would effectively mean include two categories of products namely MIMO and LTE and that they have distinct identities, but it is not possible to accept the Contention advanced by learned special counsel for the Department that MIMO does not by itself mean anything unless it is followed by the expressions technology' or 'products' and, therefore, since the exception carved out has to be 'goods', this expression has to be Interpreted to connote products based on MIMO technology. 24. What needs to be remembered is that MIMO is a technology and cannot be treated as an independent product. If the intention was to exclude even products having only MIMO technology, then the word 'products' should have been used after MIMO as well as after LTE. It, therefore, follows that the scope of 'products' excluded by entry (iv) would be products which use both MIMO and LTE. Thus, the term 'Multiple Input/Multiple Output (MIMO) and Long Term Evolution (LTE) Products' means products which contain both MIMO and LTE. This view finds support from the following decisions. * * * 28. This apart, what also needs to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustoms duty under Serial No. 13 (iv) of the notification. There is, therefore, no infirmity in the order dated 28.11.2019 passed by the Additional Director. 31. Such being the position, it would not be necessary to examine the other contentions raised by the learned counsel for the respondent, including the submission relating to the invocation of the extended period of limitation. 32. The two Customs Appeals filed by the Department, therefore, deserve to be dismissed and are dismissed 14. Aggrieved by the decision of the learned CESTAT, the Revenue has filed the present appeal, challenging the learned CESTAT s interpretation of the exclusion entry (iv) of Serial No. 13 of the amended Notification No. 24/2005 and its findings on the eligibility of the imported MIMO-enabled WAPs for exemption from customs duty. 15. The respondent, conversely, has opposed the present appeal, inter alia, on the ground that the WAPs imported by it were rightly held eligible for exemption under Serial No. 13 (iv) of the amended Notification No. 24/2005, as these WAPs operated solely on MIMO technology and did not support LTE standards, and there is no infirmity in the impugned order of the learned CESTA ..... X X X X Extracts X X X X X X X X Extracts X X X X
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