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2019 (12) TMI 108 - AT - Central ExciseLevy of excise duty - mobile phone battery and LED Bulb - taxable at 12.5% excise duty on mobile phone battery and LED Bulb or not - General Exemption Notification No. 46 dated 01 March, 2011 or benefit of General Exemption Notification No. 50 dated 17 March, 2012 for LED Bulb - whether battery chargers, PC connectivity cables, memory cards and hands-free headphones of mobile handsets are restricted to accessories or cover parts and components of mobile handsets also? HELD THAT:- A bare perusal of the description of excisable goods leaves no manner of doubt that the aforesaid qualify accessories only and have no relation to parts or components because it cannot be doubted that battery chargers, PC connectivity cables, memory cards and hands-free headphones of mobile handsets are not parts or components of mobile handsets and are accessories. If that be so, mobile phone battery is a part or component of the mobile handset because without a battery, the mobile handset cannot function. Such being the position, the Commissioner fell an error in concluding that the mobile phone battery would not be entitled to the benefit of the General Exemption Notification dated 01 March, 2011. The imposition of penalty or interest, therefore, also cannot be sustained. LED Bulbs - HELD THAT:- The Appellant is not contesting the finding recorded by the Commissioner in relation to imposition of excise duty on LED bulbs, it is not necessary for us to deal with this issue. Time limitation - HELD THAT:- The issue of limitation also is not required to be addressed since it has been held that the Department was not justified in denying the benefit of the General Exemption Notification dated 01 March, 2011 for imposition of duty on mobile phone battery. The impugned order, insofar as it directs the Appellant to pay Central Excise Duty on mobile phone charger and with interest and penalty is, accordingly, set aside - appeal allowed.
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