TaxTMI 
TaxTMI 
2026 (9) TMI 1133
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....ated braking system to prevent wheel skidding and derailment at high speeds. For manufacturing AMDBS, the Appellant imported Disc Brake Units [DBU] The imported goods were classified under CTI 86079990 and the Appellant availed the concessional BCD rate of 7.5% under Sl. No. 521 of Notification No. 50/2017-Cus., claiming that AMDBS components constitute part of "Train Protection and Warning System (TPWS)." Thereafter, post-clearance, audit was conducted by the Customs Audit officers, who raised objections on the availment of the said exemption. Two Pre-Notice Consultative Letters dated 06.01.2020 and 26.05.2020 were issued. Subsequently, a Show Cause Notice dated 18.09.2020 was issued proposing demand of differential customs duty, the impugned order was issued confirming the said demand. The appellant is before this Tribunal in appeal. 3. Learned Counsel submitted that concessional rate of duty in terms of Sl. No. 521 of the customs notification was available to the subject goods imported by the appellant. He further submitted that the above benefit on Train Protector and Warning System [TPWS] was introduced in the year 2012, with a sole objective to enhance passenger safety in ....
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.... which tells or indicates of possible danger or problem'. Applying the above definitions to the facts in hand, it was clear that any equipment which is capable of sensing possible danger or problem and then prevents or protects the train from anticipated harm or danger would qualify as TPWS, especially keeping in mind the objective of passenger safety in Indian Railways. When a train is in motion, the wheels are in constant friction with the railway tracks. Due to various reasons, the amount of friction applied on each wheel varies and due to varied friction, the wheels rotate at different speeds and can cause derailing of trains and accidents. Learned counsel stated that the subject goods by working in cohesion, continuously monitored the speed of each wheel and took action by pressing/releasing the brake pads against the discs resulting in slowing/ freeing the wheels for their uniform and safe rotation. The speeds of wheels were sensed and informed by the Pole Wheel/Wheel Slide Protection, which are in the nature of warning and the function of applying/ releasing brake by the DBU are in the nature of protection. If the subject goods were absent, there was a high probability o....
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....er of Customs (Imports) [2009 (246) ELT 718 (Tri. - Mumbai)] (iii) Wipro GE Medical System Ltd. vs. CC [2006 (206) ELT 400 (Tri.- Bang.)] 3.5 Learned counsel further stated that the impugned order had confirmed demand of duty under normal period of limitation as per Section 28(1) of the Customs Act based on proposals made in Show Cause Notice dated 18.09.2020. Accordingly, differential duty, if any, can be demanded only for a period of two years prior to the date of the show cause notice i.e., up to 19.09.2018. Thus, demand pertaining to a period prior to this date was not legally sustainable and is liable to be set aside. In the present case, demand had been raised for a period prior to 19.09.2018 in respect of Bill of Entry Nos. 7199995 dated 13.07.2018, 7528898 dated 06.08.2018 and 7954018 dated 07.09.2018. He also stated that such demand was liable to be set aside as they are barred by limitation. 4. At the outset, learned authorized representative reiterated the discussions and findings given in the impugned appeal. Learned authorized representative, further submitted that AMDBS was introduced alongside Railway Safety Regulations of 1999/2023. He stated that the....
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....7 dated 27.07.2020. Therefore, the department had used this as evidence to establish that the appellant was aware that these goods were not eligible for the TPWS exemption and that the earlier availment of the benefit was wrong. 4.4 In addition, learned authorized representative contended that a notification has to be interpreted strictly, and relied on the Supreme Court's ruling in Commissioner of Customs (Import), Mumbai vs. Dilip Kumar and Company [2018 (361) E.L.T. 577 (SC)] Learned authorized representative further stated that the impugned order had held that exemption notifications are to be interpreted strictly and any ambiguity in an exemption notification should be resolved against the assessee and in favour of the Revenue. The claimant of the exemption bears the burden of proving that the goods squarely fall within the notification. Further, relying on the judgments in Hari Chand Shri Gopal and Novopan India Ltd., the impugned order had held that to be entitled to the exemption or concession, the appellant must establish full compliance with the conditions of the notification, and any doubt, or latitude, must go against the assessee. 4.5 Learned authorized repre....
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.... No. 521 of Notification No. 50/2017-Cus dated 30.06.2017 on the impugned goods imported by them. The relevant entry at Sl. No. 521 of said Notification is reproduced below: S.No. Chapter or Heading or sub-heading or tariff item Description of goods Standard rate Integrate Goods and Services Tax Condition No. (1) (2) (3) (4) (5) (6) 521 86 or any Chapter Train protection and warning system 7.5% -- -- 7. We now take up the question of benefit of concessional rate of duty under SI. No. 521 of Notification No. 50/2017-Cus dated 30.06.2017. We find that the appellant has imported goods described as Disc Brake Unit and Pole wheels. Thus the issue to be examined is whether the goods Disc Brake Unit and Pole wheels can be termed as Train Protection and Warning System (TPWS) and therefore can these be eligible for benefit under the impugned notification. The learned counsel for the appellant has contended that the term TPWS' has not been defined or explained in the Customs Act, CTA, in the Notification of elsewhere in law. Technology keeps evolving with time and what was considered as train protection years back is not the same t....
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....in the telegram/data related with signal aspect. * Infill balises - These balises are also interfaced to signal through LEU. The telegrams/ data transmitted by these balises depend on the aspect of the signal. These are provided inadvance of the signal to update the movement authority inadvance. These balises cannot effect change of mode of Onboard system. * Fixed balises - These balises are provided wherever required. These balises transmit fixed telegrams/ data only. These can be used for enforcing Temporary speed restriction etc. * Repositioning data balises - These balises are provided wherever required to correct the previously given information. b. Line side electronic unit (LEU), its power supply & interfacing system with signaling c. Communication link (data cable) between the LEU & the balise ii) On board system comprising of a. On Board Computer (OBC) b. Data logger for diagnostics (either part of OBC or separate) c. Driver Machine Interface (DMI), indications & and non-resettable counters. d. Balise Transmission Module (BTM) e. Balise antenna fixed to the under frame ....
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....that would prevent train accidents and thus ensure safety of passengers. 12. The importer vide impugned Bills of Entry imported the goods by declaring their description namely. "Disc Brake Unit", "Pole Wheel: (Wheel Slide Protection)" and "Brake Unit" (parts for Indian Railway). The imported Disc brake unit consist of actuators in form of break cylinders, caliper units, integrated slack adjusting arrangements and wheels slide protection device. We note that impugned order has noted that Disc Brake Unit is one of the components of Axel Mounted Disc Brake System. "Disc Brake Unit", "Pole Wheel (Wheel Slide Protection)" and "Brake Unit", which though adds to the safety of High-Speed Trains, form parts for Brake System and it is nowhere indicated that these are integral parts of TPWS. In this context, we draw support from the article relied upon in the impugned order http://trainguard.in/disc-brake-system/, which explains the basic principle of axle mounted disc brake system, to be similar to conventional air brake system. The only difference is that the train brake occurs on disc rather than wheel tread as in conventional system. We also note that the impugned order has taken note ....
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....ere is no definition in the law, recourse should be taken to dictionary meanings of "protection" and "warning" to expand the scope of TPWS. Both the documents relied upon as above makes it clear that the term TPWS has a specific, well-recognized technical meaning in the railway engineering domain. A perusal of the said documents clearly evidences that TPWS falls under the domain of Signal & Telecom Department of Indian Railways and has no connection with the Mechanical/Rolling Stock Department, which governs Railways rolling stock including braking systems like AMDBS. This institutional separation strengthens the learned authorized representative's contention that TPWS and braking systems belong to entirely different technical and administrative domains within Indian Railways. They are procured under separate budgets, governed by separate RDSO specifications, and maintained by different departments. In view of the foregoing, we are inclined to agree with the learned authorized representative that the impugned goods are not components of TPWS, therefore, are not eligible for the exemption. The article relied upon by the learned authorized representative and the Specification documen....