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Import of microprocessors intended for retail sale - goods are pre-packed and are required to be affixed with MRP - prima facie benefit of nil rate of Addl duty cannot be denied on ground that importer is claiming benefit of notfn. 6/2006-CE - stay granted: CESTAT

By TIOL News Service

MUMBAI, DEC 17, 2012: THE applicant made imports of microprocessors meant for fitment inside CPU housing/Laptop body and claimed exemption from payment of additional duty of customs leviable under Section 3(1) of the CTA, 1975 in terms of Notf. no. 6/2006-C.Ex. and also claiming benefit of Notification No. 29/2010-Cus in respect of additional duty of Customs leviable u/s 3(5) of the CTA, 1975. The benefit of Notification No.29/2010-Cus is sought to be denied on the ground that since exemption under Notification No.6/2006-CE at Sr. No. 17 is availed, it is evident that the goods are not meant for retail sale.

Take a look at notfn. 6/2006-CE, Sr. no. 17 -

TABLE

S. No.

Chapter or heading or subheading or tariff item of the First Schedule

Description of excisable goods

Rate

Condition No.

17.

8471 70 or 8473 30

The following goods, namely:-
(a) Microprocessor for computer, other than
motherboards;
(b) Floppy disc drive;
(c) Hard disc drive;
(d) CD-ROM drive
(e) DVD Drive;
(f) USB Flash memory
(g) Combo drive

Nil

-

And the below mentioned is Sl. No. 1 to notfn. 29/2010-Cus -

Table

S. No.

Chapter, heading,
sub-heading or tariff
item of the First
Schedule

Description of goods

Standard rate

(1)

(2)

(3)

(4)

1.

Any Chapter

All pre-packaged goods intended for retail sale in relation to which it is required, under the provisions of the Standards of Weights and Measures Act, 1976 (60 of 1976) or the rules made thereunder or under any other law for the time being in force, to declare on the package thereof the retail sale price of such article

Nil

The adjudication proceedings resulted in confirmation of the additional duty of Customs demand of Rs. 16,93,84,353/- and interest.

Against this order passed by the Commissioner of Customs (Imports), Mumbai, the applicant is before the CESTAT with a Stay application.

The Bench after hearing the submissions observed -

"3. We find that Notification No.29/2010 provides nil rate of duty in respect of the goods classifiable under any chapter in respect of all pre-packaged goods intended for retail sale in relation to which it is required under the provisions of the Standards of Weights and Measures Act, 1976 or the rules made there under or under any other law for the time being in force, to declare on the package thereof the retail sale price of such articles.

4. The goods in question are in pre-packaged and as per the Notification No. 44(RE-2000)/1997-2002 dated 24.11.2000 issued by the DGFT provides that all pre-package commodities are to be affixed MRP. In view of the above notification as the goods in question are pre-packaged therefore are to be affixed retail sale price. Therefore, prima facie in view of the notification cannot be denied on the grounds that are not after retail sale price. The pre-deposit of the dues are waived and recovery of the same is stayed during the pendency of the appeal. Stay petition is allowed."

In passing:-

Every act is to be judged by the intention of the agent. - Anon

(See 2012-TIOL-1864-CESTAT-MUM)


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