2018 (3) TMI 1440 – CESTAT NEW DELHI – 2018 (363) E.L.T. 905 (Tri. – Del.) – Concessional rate of duty – appellant has imported components at concessional rate of duty for manufacture of mobile phone and LED/LCD televisions at their factory in Uttarakhand – goods were rejected and cleared them as scrap – Held that: – these components have not been used for manufacture of the finished goods and hence, as per Rule 8 of the 1996 Rules, the demand was raised by the department. The goods were initially consumed and after assembly, tested and found defective, When the goods were not of the quality that can be re-exported so that it gets out of production. There was no provision under which the appellant can claim the benefit – appeal dismissed.
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
s at concessional rate of duty under Sl. No.431 of Notification No.12/2012 -Cus dated 17.3.2012. The appellant has used the components in the manufacture of mobile phones. But on testing, it was found that parts were defective. The appellant rejected and cleared them as scrap. The Department claimed that these parts were not utilized, so attract the duty. So, they demanded the duty along with penalty. Being aggrieved, the appellant has filed the present appeal. 3. With this background, we heard Shri Amit Jain and Ms. Nupur Maheshwari, learned advocates for the appellant and Shri R K Majhi, learned DR for the Revenue. 4. Shri Amit Jain, learned advocate submits that the goods which were found defective, against the same, appellant has import
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
the defective parts. In the case of Jhunjhunwala Vanaspati Ltd. (supra), some goods were lost in transit and not reached the factory. Thus, the supply was in a less quantity. In the instant case, case is different as goods were neither re-exported nor stolen. 6. On the other hand, Shri Majhi, learned DR supported the impugned order relying on Rule 7 and 7A of the Customs (Import of Goods at Concessional Rate of Duty) Rules, 1996. He also submits that there was no provision to clear the goods as scrap which were not exported. 7. After hearing both the sides, it appears that these components have not been used for manufacture of the finished goods and hence, as per Rule 8 of the 1996 Rules, the demand was raised by the department. The goods w
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =