TaxTMI 
TaxTMI 
2025 (12) TMI 247
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....2,960/-. The impugned Original-in-Original dated 29.09.2023 passed by the Commissioner of Customs (Imports), Chennai confirmed the duty demand and imposed a redemption fine of Rs.36,00,000/- in lieu of confiscation, besides imposing penalty equal to the duty demand under Section 114A of the Customs Act, 1962 ('ACT') and also a penalty of Rs.10,00,000/- under Section 114AA on the Appellant and imposed penalty under Section 112(a) of the ACT ibid on M/s. Seven Seas Global Express Logistics Pvt. Ltd., CHA. Aggrieved, the Appellant has approached this forum by filing the present appeal. 1.2 The Ld. Advocate Shri S. Murugappan have argued for the Appellant and the main contentions as evident from the Grounds of Appeal are summarised below: - i. It was contended that the findings in the impugned order were misplaced as Sl.No. 586A of the exemption Notification No. 50/2017 as amended by Notification No. 92/2017 dated 14.12.2017, excluded only LED lamps i.e., lighting sources with LED as source of light, falling under CTH 9405 and not all lighting devices under the said Tariff Head. It was pointed out that there was no reference to "Lamps" under Chapter Heading 9405 in the pres....
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....Ltd. Accordingly, it was submitted the impugned order holding that the goods are liable for confiscation and imposing redemption fine was not sustainable. viii. Further reliance was placed on the following judgements in support of their contentions: - i. Northern Plastic Ltd. Vs. Collector of Customs & Excise - [1998 (101) ELT 549 (SC)] ii. Uniworth Textiles Ltd. Vs. Commissioner of central Excise, Raipur [2013 (288) ELT 161 (SC)] iii. Vesuvius India Ltd. Vs. Commissioner of Customs, Vishakapatnam [2019 (370) ELT 1134 (Tri.-Hyd.)] iv. Advanced Spectra Tek Pvt. Ltd. Vs. Commissioner of Customs (ACCC&I), Mumbai [2019 (369) ELT 871 (Tri.-Mumbai)] v. Manek Chemicals Pvt. Ltd. Vs. Commissioner of Central Excise, Ahmedabad [2002 (145) ELT 335 (Tri.-Del.)] vi. Commissioner of Central Excise and Service Tax, Dibrugarh Vs. Hi Flow Pump Co. [2012 (282) ELT 286 (Tri.-Kolkata)] vii. Commissioner of Customs & C.Ex, Amritsar Vs. D.L. Steels [2022 (381) ELT 289 (SC)] viii. Vasantham Foundry Vs. Union of India [1997 (94) ELT 32 (SC)] 2. The Ld. Counsel Shri S. Murugappan has further submitted that the goods importe....
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....es of this appeal? 6. We find that the Appellant had imported LED fixtures viz., LED Floodlight, LED Panel Light, LED Outdoor Light, etc. and also Parts such as Colour Box, Outer Carton, Socket, Remote Controller, Plastic Cover, etc. With effect from 14.12.2017, all goods falling under Heading 9405 other than LED Lamps were allowed concessional duty @10% under Notification No. 50/2017-Customs dated 30.06.2017 (Sl.No. 586A) which reads as given below: - Sl. No. Chapter or Heading or Sub-Heading for Tariff Item Description of Goods Standard Rate IGST Condition "586 A" 9405 All goods other than LED lamps 10% 7. The Appellants, initially not being aware of the amendment appears to have paid higher duty and subsequent to the appeal proceedings, they were able to get a refund of the excess duty paid for 5 bills of entry filed between 18.12.2017 and 26.12.2017. In respect of 15 other consignments, for which, bills of entry were filed subsequently, the benefit of lower duty was claimed which was extended by the Department. Subsequently, the DRI, Cochin have conducted the investigation alleging that LED Luminaires / Fixtures imported b....
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....cent lamps . U 10% 8539 31 90 - Other . 10% 8539 32 .- Mercury or sodium vapour lamps; metal halide lamps : 8539 32 10 -- Mercury vapour lamps. . U 10% 8539 32 20 Sodium vapour lamps . 10% 8539 32 30 Metal halide lamps 10% 8539 39 Other: 8539 39 10 Energy efficient triphosphor fluorescent lamps. u 10% 1 8539 39 90 Other U 10% - Ultra-violet or infra-red lamps; arc-lamps : 8539 41 00 -- Arc-lamps . 10% 8539 49 00 -- Other 10% 8539 50 00 - Light-emitting diode (LED) lamps u 1[20%] 8539 90 - Parts : 8539 90 10 Parts of fluorescent tube lamps kg. 10% 8539 90 20 Parts of arc-lamps . kg. 10% 8539 90 90 Other . kg. 10% 9405 9405 Lamps and lighting fittings ....
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....igns, illuminated name-plates and the like, having a permanently fixed light source, and parts thereof not elsewhere specified or included. 9405.10 - Chandeliers and other electric ceiling or wall lighting fittings, excluding those of a kind used for lighting public open spaces or thoroughfares 9405.20 - Electric table, desk, bedside or floor-standing lamps 9405.30 - Lighting sets of a kind used for Christmas trees 9405.40 - Other electric lamps and lighting fittings 9405.50 - Non-electrical lamps and lighting fittings 9405.60 - Illuminated signs, illuminated name-plates and the like - Parts : 9405.91 - - Of glass 9405.92 - - Of plastics 9405.99 - - Other (I) LAMPS AND LIGHTING FITTINGS, NOT ELSEWHERE SPECIFIED OR INCLUDED Lamps and lighting fittings of this group can be constituted of any material (excluding those materials described in Note 1 to Chapter 71) and use any source of light (candles, oil, petrol, paraffin (or kerosene), gas, acetylene, electricity, etc.). Electrical lamps and lighting fittings of this heading may be equipped with lamp-holders, switches, flex and plugs, transformers, etc., or, as in the c....
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....ed signs, illuminated name-plates and the like, not more specifically covered elsewhere, e.g., : (1) Suspension assemblies (rigid or chain type) for lighting pendants. (2) Globe holders. (3) Bases, handles and cases for hand lamps. (4) Burners for lamps; mantle holders. (5) Lantern frames. (6) Reflectors. (7) Lamp glasses or chimneys (bottle-necked, etc.). (8) Small cylinders of thick glass for miner's safety lamps. (9) Diffusers (including alabaster diffusers). (10) Bowls, cups, shades (including skeleton wire frames for making lampshades), globes and similar articles. (11) Chandelier trimmings, such as balls, pear-shaped drops, flower-shaped pieces, pendants, small plates and the like, identifiable by their size or their fixing or fastening devices. 94.05 Non-electrical parts of articles of this heading, combined with electrical parts, remain classified here. Separately presented electrical fittings (e.g., switches, lamp holders, flex, plugs, transformers, starters, ballasts) are excluded (Chapter 85). This heading also excludes : (a) Candles (headi....
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....gs each refer to a part only of the materials or substances contained in mixed or composite goods, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a precise or complete description of the goods. Rule 3(b) stipulates that mixtures, composite goods consisting of different materials which cannot be classified under Rule 3(a) shall be classified as if they consisted of the material or component which gives them essential character. 11. The main contention of the Appellant is that for a Lamp or lighting fittings to be classifiable under Chapter 94, it must not be specified or included elsewhere meaning that the lamp or lighting fittings must not be covered by any other heading of any other Chapter which is consistent with Note 1(f) to Chapter 94 that excludes "lamps and lighting fittings of Chapter 85;" from its scope.; that the only plausible Tariff Item is 8539 of Chapter 85 of the First Schedule to the Customs Tariff Act, 1975; that it is clear from the wordings of CTH 8539, that the same refers specifically and exclusively to "electric filament or discharge lamps, including sealed beam lamp units and ultraviolet or infra....
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....res. As the specific latter entry covers the fixtures along with LED lamps, this will squarely be applicable to the applicant, who imports both LED lamps and fittings. Therefore, the import of LED lamps & fittings may be classified under CTH 9405 rather than CTH 8539. The above discussion about classification of LED Lamps, LED Lights or LED Luminaires has been necessitated due to the Appellant's contentions that LED Lamps are not classifiable under CTH 9405 and distinguishable characteristics of these. 13. The Appellant has imported LED Lightings / Panels / Lamps and their parts. The item description as culled out from the Bills of Entry filed by the Appellant are: - i. TS LED Light ii. LED Emergency iii. LED Light iv. LED Panel without Driver (specifically mentioned as Parts of LED Panel without Driver) v. LED Floodlight vi. LED Panel Light with integrated Drive vii. LED Downlight viii. LED Outdoor Light The importer has in addition to the above, imported the following as parts: - (i) Colour Box (ii) Outer Carton (iii) Socket (iv) Controller (v) Remote Controller ....
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....d under dispute certain types of LED Lamps / Lights are classifiable under Chapter Heading 9405 which are not eligible for the concessional benefit of the Notification No. 50/2017 dated 30.06.2017 as amended by Notification No. 92/2017 dated 14.12.2017. This is the only interpretation that is relevant to resolve the dispute in this appeal. All along, it was the contention of the Appellant that they had imported luminaires and not lamps, and the Notification No. 50/2017 dated 30.06.2017 has to be interpreted not to exclude LED Luminaires cannot be supported as we are not convinced with the arguments of the Ld. Counsel for the Appellant. What is needed to be discussed here is only relating to the eligibility of the Notification No. 50/2017 dated 30.06.2017 for the imported goods by the Appellant which are described mainly as TS LED Lights, LED Emergency, LED Light, LED Floodlight, LED Downlight, LED Outdoor Light and their parts. 18. In this connection, the Hon'ble Supreme Court in the case of Commissioner of Customs (Import), Mumbai Vs. Dilip Kumar & Company [2018 (361) ELT 577 (SC)] held that the burden for entitlement of the benefit of any exemption Notification is on the asses....
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....2. The revenue's argument that the assessee had indulged in wilful suppression, in this court's considered view, is insubstantial. The view of a previous three judge ruling, in Cosmic Dye Chemical v. Collector of Central Excise (1995) 6 SCC 117 - in the context of Section 11A of the Central Excise Act, 1944, which is in identical terms with Section 73 of the Finance Act, 1994 was that: "Now so far as fraud and collusion are concerned, it is evident that the requisite intent, i.e., intent to evade duty is built into these very words. So far as misstatement or suppression of facts are concerned, they are clearly qualified by the word "wilful" preceding the words "misstatement or suppression of facts" which means with intent to evade duty. The next set of words "contravention of any of the provisions of this Act or rules" are again qualified by the immediately following words "with intent to evade payment of duty". It is, therefore, not correct to say that there can be a suppression or misstatement of fact, which is not wilful and yet constitute a permissible ground for the purpose of the proviso to Section 11-A. Misstatement or suppression of fact must be wilful." 6....
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....s Act, 1962.Considering the above facts that the Respondent is a regular importer of the product which is used in the manufacture of Brake pads and also considering that they were adopting the above classification consistently, we are of the opinion that attributing any malafide intention or motive for adopting such classification or claiming exemption benefit of the Notification is not justified, considering the facts of this case. As such invocation of extended period for demand of duty in terms of provision of section 28(4) of Custom Act 1962 is not legal or justified. The issue of limitation is answered in favour of the Respondent importer." 19.3 Thus, in the absence of any finding of suppression by the Appellant in the impugned order, we find that the allegation of deliberate availment of concessional rate of duty under Notification No. 50/2017 dated 30.06.2017 with an intent to evade payment of appropriate duty by the Appellant is not at all tenable as misclassification or availment of benefit of the Notification could not be equated with misdeclaration or suppression within the meaning of Section 28(4) of the Customs Act, 1962. It is a settled law that once the goods are ....