TaxTMI 
TaxTMI 
2025 (11) TMI 706
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....984647 dated 01.04.2009 was facilitated through the automated electronic assessment process and the second Bill of Entry No. 232943 dated 08.06.2009, in which the goods were described as "Odyssey-501 TV Tuner Internal (TV Tuner Card for ADP)", was assessed by the appraising group and classified under 8529 9090. The third BOE No. 408091 dated 13.01.2010, which described the goods as "Odyssey 502 External VGA Card" with generic description as "computer parts" and classified under CTH 8473 3099, was facilitated through the RMS but was taken up for scrutiny. After due process of law, the Ld. Adjudicating Authority classified the imported goods under Heading 8528 7100 (reception apparatus for television) and demanded differential duty short-levied i.e. Rs.8,94,697/- along with interest. A penalty of Rs.8,94,697/- was imposed under sec. 114A on M/s. Compuage Infocom Ltd. and a penalty of Rs.3,00,000/- under sec. 112(a) on Shri Bhavesh Mehta and Shri Ashish M Patel. The appellants preferred appeals before the Ld. Commissioner (Appeals) and the appeals came to be rejected through this impugned order. Hence the present appeals before this Tribunal. 3. The Ld. Counsel Shri Madan G appeare....
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....es which sell computers, computer peripherals and their accessories. He submitted that when the demand is not sustainable, there can be no question of imposition of penalty as has been held by the Supreme Court in the case of HMM Ltd - 1995 (76) ELT 497 (SC). He prayed that the impugned order be set aside and thus render justice. 3.2 Ld A.R. Smt O.M. Reena appearing for revenue, stated that the goods were machines capable of performing specific functions like conversion of signals suitable for display on the monitor, selection of channels and recording the same. The operating software which controls the TV Tuner has to be installed in the ADP Machine and that program is executed by the CPU. The TV tuner has nothing to do with the basic function of computer such as retrieving, processing and storage of data as well as does not enhance / add to effectiveness or convenience of the machine. It hence did not appear to be a part or accessory of the ADP machines. She hence prayed that the appeal may be rejected. 4. We have perused the appeal and heard both the parties to the dispute. We find that the preliminary submission made by the appellant is that the SCN is time barred. We exa....
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....it the requirements of the heading 8473, in spite of the fact that the imported goods are marketed and sold in the name of TV Tuners. This clearly amounts to willful mis-statement by the noticees. If the classification of the department was not acceptable in the previous instance, he should have paid the duty under protest and should have either appealed or sought speaking order. Even if the noticees put up the defence of exigency for not doing the same, nothing prevented them in exercising the option thereafter. Moreover vide Circular 43/2005-Cus dated 24.11.2005, the Board made it clear that the primary objective of the Risk Management System is to strike an optimal balance between facilitation and enforcement and to promote a culture of compliance. It is intended to improve the management of the resources of the department to enhance the efficiency and effectiveness in meeting stakeholder expectations and to bring the Customs processes at par with the best international practices. Hence the facility of RMS has been misused by the notices." 6. We agree with revenue that once a classification of imported goods has been finalised by the proper officer it has to be followed. Fail....
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.... on 9th-10th May, 2011 in Bangalore, that it was clarified that TV tuners, both internal and external are more appropriately classifiable in Harmonised Customs Tariff in tariff item 85287100. Hence even after the period under dispute there was a lack of clarity even in the department about the correct classification of the goods. Further this Tribunal vide Final Order No. 41994/2017 dated 06.07.2017 in the appellants own case, examined the appellants classification of "External VGA Board", under CTH 8473 3030 as against revenues classification under CTH 85299090 and held that the classification under Chapter 84 is more appropriate than under Chapter 85. When there are genuine disputes over interpreting legal provisions, it is unjustified to apply an extended limitation period simply because the assessee's position is considered not bona fide. Under the circumstances the charge of misdeclaration will not hold good and the SCN could not have invoked the extended period. 8. The Hon'ble Allahabad High Court in Commissioner Customs, Central Excise & Service Tax Vs M/S Monsanto Manufacturer Pvt. Ltd. [2014 (35) STR 177 (ALL) / CENTRAL EXCISE APPEAL No. - 370 of 2013, Date:27.03.20....