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2019 (12) TMI 108

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..... lation 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 r .....

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..... benefit of the General Exemption Notification No. 46 dated 01 March, 2011 for payment of 2% ad valorem duty on mobile phone battery nor could the Appellant have availed the benefit of General Exemption Notification No. 50 dated 17 March, 2012 for LED Bulb. Accordingly, a show cause notice dated 22 May, 2017 was issued to the Appellant. The Appellant filed a detailed reply dated 28 June, 2017. The contentions of the Appellant were not accepted by the Commissioner and the order dated 31 January, 2018 was passed by the Commissioner confirming the demand. 3. It needs to be stated that there is a short payment of duty on clearance of mobile battery to the extent of ₹ 2,12,34,792/- and on LED bulb to the extent of ₹ 2,24,280/-. In re .....

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..... manufacturer of such goods (and not the buyer of such goods), under the provisions of the CENVAT Credit Rules, 2004. 132 Any Chapter Parts, components and accessories namely, battery chargers, PC connectivity cables, memory cards and hands-free headphones of mobile handsets. Explanation - For the purposes of this entry, mobile handsets include cellular phones. 4. According to the Commissioner, the benefit of the aforesaid Notification would be available only for battery chargers, PC connectivity cables, memory cards and hands-free headphones of mobile handsets since these four items have been specifically mentioned at Serial No. 132. 5. In regard to the LED bulbs, the Appellant had claimed benefit of the Exemption Notification dated 17 Mar .....

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..... tery has been held to be entitled to the benefit of Customs Duty Exemption, which Notification is similarly worded and phone battery has not been treated as an accessory of a mobile handset. 8. Learned Counsel, however, fairly stated that the Appellant is not pressing the appeal in regard to the imposition of duty on LED bulbs. 9. Learned Authorised Representative of the Department, however, reiterated the findings recorded by the Commissioner insofar as the imposition of duty on mobile phone battery is concerned. Learned Authorized Representative submitted that the Commissioner committed no error in placing reliance upon the Notification No. 50 dated 17 March, 2012 and in this regard placed reliance upon the Entry at Serial No. 263-D which .....

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..... ile 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. 12. Reference at the entry at Serial No. 263-D that relates to battery used in the manufacture of mobile handset by learned Authorised Representative of the Department is misconceived as it is not the case of the Appellant that the battery is used in the manufacture of the mobile handset. 13. As the learned Counsel for the Appellant has fairly stated that the Appellant is not contesting the finding .....

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