2024 (8) TMI 1543 - AT - Customs

Customs Duty Exemption for Wireless Access Points Upheld Following Precedent Under CTI 8517 62 90

The CESTAT New Delhi dismissed the department's appeal against an order allowing M/s Compuage Infocom Ltd. exemption from basic customs duty on imported ... Entitlement for benefit of Notification dated 01.03.2005, as amended by Notification dated 11.07.2014 - imported “Wireless Access Points/MIMO products” falling under Customs Tariff Item [CTI] 8517 62 90 - HELD THAT:- The matter is covered by a decision of this Tribunal in Commissioner of Customs (Air), Chennai - VII versus Redington (India) Ltd. [2023 (12) TMI 754 - CESTAT NEW DELHI], where it was held that 'WAP imported by the appellant works on technology and does not support LTE standard. Beetal Teletech was, therefore, justified in claiming exemption from the whole of the customs duty under Serial No. 13 (iv) of the notification.' It is, however, also pointed out by the learned authorized representative for the department that department has filed Customs Appeal No. 44 of 2024 before the Delhi High Court which is pending but no stay order has been granted. Appeal dismissed. The department appealed against the order of the Additional Director General (Adjudication), Directorate of Revenue Intelligence, which allowed exemption from basic customs duty on imported 'Wireless Access Points/MIMO products' under Customs Tariff Item (CTI) 8517 62 90, relying on Notification dated 01.03.2005 as amended on 11.07.2014. The department contended that the MIMO products, irrespective of LTE technology incorporation, were not eligible for the exemption and issued a show cause notice dated 27.11.2018 seeking re-classification and denial of benefit. The Additional Director General, after detailed consideration, dropped the demand, allowing the exemption. The department's appeal challenged this decision. Both parties acknowledged that the issue was governed by this Tribunal's precedent in Commissioner of Customs (Air), Chennai - VII v. Redington (India) Ltd. [(2023) 12 Centax 99 (Tri. - Del.)], which supported the exemption claim. Although the department has filed a pending appeal before the Delhi High Court without any stay, the Tribunal held that, 'in view of the decision of this Tribunal in Redington (India) Ltd., the present appeal filed by the department would have to be dismissed.' Accordingly, the appeal was dismissed, affirming the exemption from basic customs duty on the imported MIMO products under the cited Notification.