2013 (1) TMI 475 - AT - Customs

Customs Duty Exemption Granted for Sound-Absorbing Sheets and Fire Alarm System

COGNIZANT TECHNO. SOLUTIONS INDIA P. LTD. Versus CC. (AP & ADMN). KOLKATA-I

COGNIZANT TECHNO. SOLUTIONS INDIA P. LTD. Versus CC. (AP & ADMN). KOLKATA-I - 2012 (286) E.L.T. 77 (Tri. - Kolkata) Issues:1. Eligibility of Mineral fibre sound absorbing sheet for customs duty exemption under Notification No. 140/91-Cus.2. Eligibility of Fire detection alarm system for customs duty exemption under Notification No. 140/91-Cus.Analysis:Issue 1:The appellant, a 100% EOU, imported Mineral fibre sound absorbing sheets and claimed customs duty exemption under Notification No. 140/91-Cus. The Commissioner denied the benefit, stating that the sheets were not covered under the notification. The appellant argued that the sheets, used as false ceiling material, fell under the definition of Modular Furniture. The Tribunal considered the definition of furniture from Black's Law Dictionary and Law Lexicon. It was noted that the sheets, when used as false ceiling, were necessary furniture for an office space, making it habitable and functional. Therefore, the imported items were deemed eligible for the customs duty exemption under the notification.Issue 2:Regarding the Fire detection alarm system, the appellant claimed customs duty exemption under the same notification. The Tribunal observed that the system operated automatically without the need for human intervention, enhancing building security functions. The functionality of the system surpassed that of a safety system, providing protection to occupants and buildings. Referring to the I.T. Security Policy guidelines, it was established that fire detection alarm systems were part of the security system. The Tribunal concluded that the system qualified for the customs duty exemption under the notification. The Commissioner's order denying eligibility for both items was set aside, and the appeal was allowed with consequential relief as per the law.