Reclassification, differential duty, confiscation and penalties quashed where department lacked chemical evidence and improperly reopened past clearan...
CESTAT allowed the appeal and set aside the demand for duty on imported components, holding there was no evidence that the components were first assembled into CTVs, tested and thereafter disassembled for clearance. The Tribunal concluded the parts did not possess the essential character of complete CTVs and thus were not exigible as finished goods; the impugned duty demand for alleged short-levy on clearance of kits was quashed. Consequentially, all penalties and interest imposed under the Central Excise enactments and rules were also set aside. Appeal accordingly allowed and impugned orders of demand, interest and penalties annulled in favour of the Appellant.
CESTAT allowed the appeal and set aside the demand for duty on imported components, holding there was no evidence that the components were first assembled into CTVs, tested and thereafter disassembled for clearance. The Tribunal concluded the parts did not possess the essential character of complete CTVs and thus were not exigible as finished goods; the impugned duty demand for alleged short-levy on clearance of kits was quashed. Consequentially, all penalties and interest imposed under the Central Excise enactments and rules were also set aside. Appeal accordingly allowed and impugned orders of demand, interest and penalties annulled in favour of the Appellant.
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