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2018 (9) TMI 1156 - AT - CustomsBenefit of exemption from customs duty - import of cables - telecom equipment for which these cables are used all have an operating voltage of less than 80V. - Department took the view that the cables imported by the appellants are power cables of voltage of more than 80V and not all the cables are designed for telecommunication use as evident by the manufacturer's product data sheet - Sl. No. 28 of Notification No. 25/2005-Cus. dated 1.3.2005 - Held that:- The purpose and intent of the 1996 Rules is basically to monitor the route taken by goods imported under certain exemption notification benefits, inter alia, to ensure that they are being used for intended purpose and in the intended manner. While this may be so, it is relevant to note that appellants herein cannot be judged in the same manner as a fly-by-night operator. Even as per the narration in para-8 of the impugned order, they are a 100% subsidiary of the Volex Group, UK and are in the business in the manufacturing cable assemblies for telecommunication and consumer electronic goods industries with major clients such as Erickson India, Idea Cellular, Tata, Nokia, Dell, Lenovo, Samsung, Philips etc. The appellants are also a unit registered with the Central Excise authorities filing periodical returns indicating the excise product manufactured and cleared from their factory. While no doubt, the procedural requirements of the 1996 Rules would be required to be followed for availing the benefit of exemption under Sl.No.33, we hold that unintended aberrations in such compliance should not result in derailment of the exemption benefit otherwise eligible. While holding that appellant cannot take benefit of the exemption under Sl.No.28 of notification No. 25/2005-Cus. for the impugned imported goods, it is held that they can very well avail the benefit under Sl.No.33 of the same notification instead. Penalty u/s 112 (a) of the Customs Act, 1962 - Held that:- The penalty of ₹ 4,66,000/- imposed on appellants under Section 112 (a) of the Customs Act, 1962 is also unjustified and the same is therefore set aside. Appeal allowed.
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