2023 (5) TMI 183 - AT - Customs

Appeal denied for silver conductor paste as 'parts consumed' in solar cells under Notification 12/2012-CE.

M/s JUPITER INTERNATIONAL LTD. AND M/s JUPITER SOLAR PVT. LTD. Versus COMMISSIONER OF CUSTOMS, NEW DELHI

The appeal by Jupiter International Pvt Ltd. against the denial of benefit under Notification No. 12/2012-CE for imports of silver conductor paste was ... Exemption from CVD - Denial of the benefit of the Notification No. 12/2012-CE - imports of silver conductor paste - benefit of the said Notification has been denied in the impugned order holding that the silver conductor paste is a consumable item and not a part - HELD THAT:- The Notification clearly hold that the exemption is only available if the goods are consumed within the factory of production. In the instant case the goods are imported and, therefore this condition is not satisfied. For this reason the benefit of notifications cannot be extended. It is noticed that learned Authorised Representative relied on this decision of Devilog Systems (I) Ltd. vs. Collector of Central Excise, Bangalore [1996 (10) TMI 195 - CEGAT, NEW DELHI]. In the said case distinction between the “part” and consumable has been made holding that The value of parts without which the machine cannot function as such has to be included in the assessable value of the machine. There may be accessories which are not necessary for the functioning of the machine but which enable the machine to provide scope for additional functions and which are not compulsorily sold to all buyers of the machine and are sold only at the option of the buyers. Such parts cannot be regarded as integral part of the machine and their value cannot be added to the assessable value of the machine. Thus, it is apparent that the goods imported by the appellant are not in the nature of parts - there are no merits in the appeal - appeal dismissed. Issues involved:The denial of benefit under Notification No. 12/2012-CE for imports of silver conductor paste by Jupiter International Pvt Ltd.Summary:The appeal by Jupiter International Pvt Ltd. against the denial of benefit under Notification No. 12/2012-CE for the imports of silver conductor paste was discussed. The appellant claimed that the silver conductor paste should be considered as 'parts consumed' for the purpose of exemption from CVD. The impugned order denied the benefit, stating that the paste is a consumable item and not a part. The appellant argued that the term 'parts consumed' should be interpreted to include items like the silver conductor paste, which lose their independent identity when used in the final product, in this case, solar cells. The appellant relied on previous tribunal decisions and the interpretation of the term 'consumed' to support their claim.The authorized representative for the respondent supported the impugned order, emphasizing that the imported goods were not consumed within the factory of production as required by the Notification. He also argued that the term 'consumed' does not necessarily imply losing identity, and the benefit of the Notification cannot be extended to imported goods. The representative highlighted a previous decision that made a distinction between parts and consumables, indicating that the silver conductor paste does not qualify as a part.The Tribunal considered the arguments presented by both parties and examined the Notification, which specified that the exemption is only applicable if the goods are consumed within the factory of production. Since the goods in question were imported, this condition was not met, leading to the dismissal of the appeals. The Tribunal also referenced previous decisions and the distinction between integral parts and consumables to support their decision.