TaxTMI 
TaxTMI 
2024 (1) TMI 96
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.... AKMJMC - 200UF and 400UF', the appellants had filed Bill of Entry (B/E) No. 7500016 dated 15.02.2022 classifying the same under Customs Tariff Item 8532 2990 paying applicable import duty. The self-assessed B/E was facilitated under Risk Management System (RMS) and assessment and examination was not prescribed under RMS based clearance; however, during scrutiny of the subject B/E by Customs officer at RMS Cell, JNCH, he had raised a query to the appellants seeking to know whether the said imports are in compliance with quality control requirements as per BIS Indian Standard for IS 13340 applicable for the imported item of electrical capacitor. On this question, the appellants had replied that the imported goods are 'dry type capacitor' and the requirement of BIS standard IS 13340 apply only to 'power factor correction and power factor capacitor' which are normally oil filled and these capacitor are of different type than the one presently under import by them. The department disputed the claim of the appellants and the goods were physically examined and based on the examination report and other details submitted by Docks Customs Superintendent, the original authority i.e., Deputy ....
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....capacitor worked out at 3.46 kg. per unit, he stated that the appellants have failed to prove as how such a big capacitor can be installed on electronic circuits, to claim exclusion from the application of BIS standards. Further, he also stated that as the appellants are traders, they will not be able to control the use of capacitors as components, after these are being sold, in order to ensure that they are used only as a parts of power supply equipment to claim exemption from applying the requirements of BIS 13340. Thus, learned AR justified the action of Commissioner of Customs (Appeals) in confirming the original order for confiscation of imported goods and for imposition of penalty. 5. Heard both sides and perused the case records. 6.1. The issue involved herein is to decide whether the appellants in import of the impugned goods viz., 'CRE Film Capacitor AKMJ-MC - 200UF and 400UF', have violated the legal requirements of Electrical Capacitor (Quality Control) Order, 2017 inasmuch as the impugned goods does not carry BIS standard compliance certification and whether the impugned goods are liable for confiscation under Section 111(d) ibid. 6.2 We find that the legal req....
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....s Order, shall comply with such directions. SCHEDULE Sr. IS No. Title 1. IS 2993 A.C. motor capacitors 2. IS 13340 Power capacitors of Self healing Type for AC Power Systems having Rated Voltage upto 650V 3. IS 13585 Part I Shunt Power capacitors of the Non-Self Healing Type for AC Systems having a Rated Voltage upto and including 1000V PART ONE GENERAL PERFORMANCE TESTING AND RATING SAFETY REQUIREMENTS GUIDE FOR INSTALLATION AND OPERATION" 6.3. We find that the Commissioner of Customs (Appeals) had given a finding that the imported goods are power capacitor of self-healing type covered under IS 13340 : 1993, on the basis of his careful perusal of the facts of the case, documents on record and the submissions made by the appellants. Further he had also given a finding that the goods mentioned in the impugned Bill of Entry and invoice are mis-declared, and therefore he concluded that the appellants have mis-declared with an intention to import sub-standard goods without fulfilling the mandatory BIS requirement and thus the appellants had violated the provisions of Section 46(4) and 46 (4A) ibid and hence he decided that the goods becam....
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....ever, under the exclusion categories 11 type of capacitors have been specified. These inter-alia include "(g) Capacitors to be used in power electronic circuits" and "(k) Capacitors intended to be used in various types of electrical equipment and thus considered as components". In the case of the imported goods by the appellants, the factual details submitted clearly prove that M/s Fuji Electric Consul Neowatt Pvt. Ltd. is buying the capacitors of specific description 'Film Capacitor AKMJ-MC - 200UF of 330v' and 'Film Capacitor AKMJ-MC - 400 UF of 330v' for manufacture of various products such as Line Interactive UPS, Single Phase UPS, Three Phase UPS, Solar Inverters, Power Conditioning Solutions, Static Transfer Switch & PDU etc. inasmuch as their letter dated 25.02.2022, specifically makes a request for clearance of this shipment covered under the impugned order as early as possible, as the imported equipment are required for UPS systems for critical medical application which are held up due to shortage of the above supply by the appellants. The above facts clearly prove that the imported CRE film capacitors are meant for use as components in the power supply equipment manufactu....
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....¶à¤¿à¤·à¥à¤Ÿà¤¿ Indian Standard POWER CAPACITORS OF SELF-HEALING TYPE FOR AC POWER SYSTEMS HAVING RATED VOLTAGE UP TO 650 V — SPECIFICATION - August 1993 UDC 621-319.4-027-465 BIS 1993 BUREAU OF INDIAN STANDARDS MANAK BHAVAN, 9 BAHADUR SHAH ZAFAR MARG NEW DELHI 110002 Price Group 9 Document 2 IS 13340: 1993 Indian Standard POWER CAPACITORS OF SELF-HEALING TYPE FOR AC POWER SYSTEMS HAVING RATED VOLTAGE UP TO 650 V-SPECIFICATION 1 SCOPE 1.1 This standard applies to self healing capacitor units and banks intended to be used, in particular, for power factor correction of ac power systems of upto and including 650 V rated voltage and frequency 15 to 60 Hz - NOTE Additional requirements for capacitors protected by internal fuses as well as requirements for the internal fuses are given in IS 12672 1989 1.2 The following are excluded from the scope of this standard a) Shunt capacitors of non-self healing type for at power systems having rated voltage of up to 650 V, b) Shunt capacitors for ac power systems having a rated voltage above 650 V, (urder p epiration ....