2018 (10) TMI 1856 - AT - Customs

Classification of imported goods - Optical Fiber Cable used in telecommunication - classifiable under Customs Tariff Heading 8549 and eligible to benefit of exemption under Notification No. 20/2005-Cus. dated 1-3-2005 or the classification of the said cable is under Tariff Heading 9001 of Customs Tariff Act 1975? - HELD THAT - As far as classification of the Optical Fibre Cables imported by the appellants the Larger Bench of this Tribunal has decided the issue on merit against the assessee observing that the same is classifiable under Customs Tariff Heading 9001 of the Customs Tariff Act 1975. Therefore the appeals filed by the assessees are accordingly dismissed. Levy of redemption fine and penalties - HELD THAT - In addition to confirmation of the demand the authorities below have imposed fine and penalty which in our opinion cannot be sustained as the issue involved relates to classification of the imported Optical Fibre Cables and no facts have been suppressed nor misdeclared while claiming classification under Heading No. 8544 of Customs Tariff Act 1975. Consequently the fine and penalties imposed are set aside and orders are modified to this extent and appeals are partly allowed. Enhancement of penalty - HELD THAT - The filed by the Revenue which relates to enhancement of penalty the same is dismissed and the Appeal also of the Revenue which relates to classification of the Optical Fibre Cables under Tariff Heading 9001 is hereby allowed. Appeal disposed off.

Summary

Issues Involved: Classification of Optical Fiber Cable under Customs Tariff Heading 8549 or 9001, eligibility for exemption under Notification No. 20/2005-Cus., penalty imposition, and confiscation of goods.

Classification Issue:
The appeals involved the classification of Optical Fiber Cable imported by the assessee under Customs Tariff Heading 8549 or 9001 and eligibility for exemption under Notification No. 20/2005-Cus. The Larger Bench of the Tribunal decided that the cables fall under Heading 9001, dismissing the appeals filed by the assessee. The decision was based on a detailed analysis of the issue, resolving conflicting views.

Penalty and Confiscation Issue:
The assessee argued against the penalty and confiscation of goods, stating no mala fide intention in declaring the classification under Heading 8544. The Revenue accepted that the issue was a matter of interpretation of law due to conflicting views. The Tribunal set aside the penalties imposed, noting that no facts were suppressed or misdeclared regarding the classification under Heading 8544. Appeal Nos. C/54 & 55/2010 were partly allowed, modifying the orders accordingly.

Enhancement of Penalty Issue:
In Appeal No. C/126/10 filed by the Revenue concerning the enhancement of penalty, the Tribunal dismissed the appeal. However, in Appeal No. C/688/2008 by the Revenue regarding the classification of Optical Fiber Cables under Tariff Heading 9001, the appeal was allowed. The Tribunal disposed of all appeals accordingly, providing a detailed analysis and reasoning for each decision.

This judgment by the Appellate Tribunal CESTAT MUMBAI addressed the classification issue of Optical Fiber Cable, eligibility for exemption, penalty imposition, and confiscation of goods. The Tribunal, after considering conflicting views, classified the cables under Heading 9001, dismissing the appeals by the assessee. The penalty and confiscation issue was resolved by setting aside the penalties imposed due to no suppression or misdeclaration of facts. The Tribunal allowed one appeal by the Revenue regarding the classification under Tariff Heading 9001 while dismissing another appeal concerning the enhancement of penalty. The judgment provided a comprehensive analysis and reasoning for each decision, ensuring a fair and just resolution of the issues at hand.