TaxTMI 
TaxTMI 
2026 (10) TMI 139
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....rters under Bill of Entry dated 17.08.2017, declared the classification under Customs Tariff Item 85044010 availed the benefit of Sl. No. 375 of Schedule III of Notification No. 1/2017-Integrated Tax (Rate) dated 28.06.2017 and paid customs duty as applicable. Thereafter alleging that as per Notification prevailing at the time of import, rate of IGST is 28% against the 18% as declared by the Appellant, proceedings were initiated and Show cause notice dated 11.06.2019 was issued. Thereafter Adjudication Authority as per the Order-in-Original dated 28.11.2019 confirmed the demand and also imposed penalty of Rs.5,000/- under Section 117 of the Customs Act, 1962. Aggrieved by the said order, an appeal was filed before the Commissioner (Appeals)....
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....No. 137 of the Notification No. 1/2017-IT (RT) dated 28.06.2017 (IGST 28%). (1) The item of import "Static Convertors" are ordered to be classified under CTH 8504 4040 whereas the goods are rightly classifiable under CTH 8504 4010 as "Electrical Inverter-Rectifier" since it is not an UPS. (2) "Static Convertors" are ordered to be appropriately covered under Entry No.375 of Notification No. 01/2017 IT (RT) dated 28/06/2017 (IGST @ 18%), whereas the goods being "Convertors -DC/DC Current Multiplier" (not an UPS) falls under CTH 8504 4010 are covered under Schedule IV, Sl. No. 137 of the Notification No.01/2017-IT (RT) dated 28.06.2017 (IGST 28%). 4. Learned AR further submits that while allowing the appeal, Appellate auth....
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....that "..This heading also includes stabilised suppliers (rectifiers combined with a regulator) e.g. uninterrupted power supply (UPS) units....." (v) It is obvious from the above Notes that the UPS is actually a rectifier and not a Direct current converter. Whereas S. No. 137 includes rectifiers and at the same time excludes UPS which is a rectifier. To remove this ambiguity, Govt. omitted S. No. 137 and put all static converters under S. No. 375 of Schedule III." 6. The Respondent further submits that the adjudicating authority has stated in his order that since the importer had not claimed or shown that the goods imported by them were static convertor (UPS), the same did not merit to be covered under Schedule III, Sl. No. 375. ....
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....ased on the fact that Heading 8504 at 4-digit level covers Electrical transformers, static converters (for example, rectifiers) and inductors. At the 6 digit level, Sub-heading 8504 40 covers all kinds of static converters. This sub-heading is further split into 8 digit level, covering inverters (TI 85044010) and rectifiers (TI 85044021 and 85044029). As per the HSN explanatory notes Rectifiers convert alternating current to direct current. Inductors consist essentially of a single coil of wire, which inserted in an AC circuit limit or prevents by its self-induction the flow of AC. Therefore, it is clear that the Notification distinguishes the static converters which are inverters as in Sl. No. 375 and the static converters which are rectif....
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....licable Notification and entry thereof, it is noted that the appellant and their ARs are relying upon Notification No. 01/2017-IT(RT) dated 28.06.2017 and entry no. 375 which specifies a rate of 18% IGST. However, it is also noted that vide Notification No. 43/2017 IT (RT) dated 14.11.2017, the IGST rate has been made uniform at 18% and the erstwhile Sl. Nos. and the entries thereof have been omitted which means that the earlier two IGST rates of 18% and 28% have now been made into one harmonized IGST rate of 18%. It is noted that the Bill of Entry (B.E) No. 2879376, dated 17.08.2017 was filed on 17.08.2017 and Notification No. 43/2017 IT(RT) vide which the two IGST rates have been harmonized under one rate of 18% is only effective prospect....