Supreme Court remits cellphone import valuation cases to CESTAT for fresh decision

The Supreme Court heard appeals concerning the under valuation of cellular telephones imported by assessees and the inclusion of software value for duty payment. The Court remitted the matter back to CESTAT for decision by a larger bench, directing consideration of common evidence in all cases. The CESTAT decisions were set aside, and the matters were remitted for fresh consideration within a year.

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Issues:
1. Under valuation of cellular telephones imported by assessees.
2. Inclusion of value of software in the transaction value of cellular phones for duty payment.
3. Dispute regarding classification of goods.
4. Decision of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in favor of assessees.
5. Evidence of foreign exporter wanting to sell phones and software as one package.
6. Splitting of invoice by assessees.
7. Import of phones and software as one item by other companies.
8. Proposal to send matters back to CESTAT for decision by a larger bench.
9. Direction for consideration of common evidence in all cases.
10. Setting aside of CESTAT decisions and remitting the matter back for fresh consideration by a larger bench.

The Supreme Court heard three appeals involving under valuation of cellular telephones imported by assessees and the inclusion of software value for duty payment. The assessees sought to clear goods under Custom Tariff Heading 8525.20.17, classifying them as non-integral to phones. The Department disagreed and issued Show Cause Notices. The issue was remitted to CESTAT, which ruled in favor of assessees. However, new evidence led to further Show Cause Notices and CESTAT decisions favoring the Department. The Court agreed to send the matters back to CESTAT for a decision by a larger bench, directing consideration of common evidence in all cases. The CESTAT decisions were set aside, and the matters were remitted for fresh consideration within a year.

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