Exemption for imported buffer phones upheld where no actual intent for retail sale was found; confiscation and penalties fell.

Importer was held entitled to Notification No. 21/2012-Customs benefit because the goods were imported as free supply or service buffer phones for authorised service stations, not for retail sale. The bill of entry declaration referring to intended sale was treated as an inadvertent repetition of past practice, and the department had an opportunity to correct the assessment. In the absence of any finding that the goods were actually meant for sale, denial of exemption was not justified. Confiscation, redemption fine and penalty were therefore unsustainable, and the importer's relief was affirmed.

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Issues: Whether the importer was entitled to the benefit of Sl. No. 87 of Notification No. 21/2012-Customs despite the declaration in the bill of entry and the alleged non-fulfilment of the procedural condition relating to intended sale, and whether confiscation, redemption fine and penalty were sustainable.

Analysis: The goods were found to have been imported as free supply/service buffer phones for distribution to authorised service stations and not for retail sale. The declaration in the bill of entry claiming exemption for goods intended for sale was treated as an inadvertent repetition of a past practice, and the material on record showed that the department had the opportunity to correct the matter at the assessment stage. In the absence of any finding that the goods were actually meant for sale, the basis for denying the notification benefit and for sustaining confiscation and penalties was not made out.

Conclusion: The denial of exemption was not justified and the assessee was entitled to relief from confiscation, redemption fine and penalty.

Final Conclusion: The Revenue's appeal failed and the order granting relief to the importer was affirmed.

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