2009 (2) TMI 521 - AT - Customs

Tribunal grants waiver on duty & penalty, stays recovery pending appeal. Goods labeled as antennas entitled to exemption.

The Tribunal, led by Vice-President Jyoti Balasundaram, granted the waiver of pre-deposit of duty and penalty, staying the recovery pending the appeal. ... Stay/Dispensation of pre-deposit Issues:1. Application for waiver of pre-deposit of duty and penalty.2. Interpretation of whether the goods qualify for exemption under Notification No. 25/2005-Cus.3. Comparison with imports by other entities under Notification No. 21/2002-Cus.4. Opposition by the Jt. CDR based on the distinction between antenna sub-systems and antennas.Analysis:1. The case involved an application for waiver of pre-deposit of duty amounting to Rs. 27,17,073/- and penalty of Rs. 7,50,000/-, which were confirmed due to the classification of the goods as a 9.3 Meter Compact Cassegrain Antenna Sub-system Model 9.3 KPK. The central issue was whether these goods qualified for exemption under Sl. No. 15 of the Table annexed to Notification No. 25/2005-Cus dated 1-3-2005.2. The applicants argued that the goods, despite being labeled as antenna sub-systems, were essentially antennas eligible for the benefit of the Notification. They presented literature to support their claim and highlighted instances where similar imports by other entities like Tata Elxsi Ltd. were classified as antenna sub-systems and granted benefits under Notification No. 21/2002-Cus dated 1-3-2002, which included antennas. The contention was that since similar goods were treated as antennas in other cases, the duty and penalty should be waived.3. The Jt. CDR opposed the waiver request, emphasizing the Commissioner's findings that antenna sub-systems were distinct from antennas and that the goods in question were not proven to be used in radio-telephony or radio-telegraphy apparatus. Despite this opposition, the Tribunal found that the applicants had established a strong prima facie case for waiver based on the argument that goods labeled as antenna sub-systems were treated as antennas for the purpose of availing benefits under a different notification.4. Ultimately, the Tribunal, led by Vice-President Jyoti Balasundaram, decided to grant the waiver of pre-deposit of duty and penalty, staying the recovery pending the appeal. This decision was based on the applicants' argument and the Tribunal's assessment that a strong case had been made for treating the goods as antennas entitled to exemption, similar to other imports under a different notification.This detailed analysis covers the issues raised in the judgment, the arguments presented by both sides, and the ultimate decision reached by the Tribunal, providing a comprehensive understanding of the legal reasoning and interpretation involved in the case.