TMI Blog2023 (12) TMI 754X X X X Extracts X X X X X X X X Extracts X X X X ..... vision Bench of the Tribunal in Ingram Micro India [ 2020 (11) TMI 9 - CESTAT CHENNAI] also confirmed the classification of identical product (i.e. WAP) under CTI 8517 62 90 and extended the benefit of the subsequent notification dated 30.07.2017. The Department has accepted the Order passed by the Tribunal. Therefore, once the benefit has been granted to Ingram Micro in the subsequent notification for an identical product, the benefit under the notification dated 01.03.2005, as amended on 11.07.2014 should also be extended to Redington. What also needs to be noted is that India is a signatory to the Information Technology Agreement [ITA] dated 13.12.1996 by the World Trade Organization. The ITA requires each participant to eliminate and bind customs duties at zero for all products specified in the Agreement. India signed the Agreement on 01.07.1997. Pursuant to ITA, India introduced the notification. At the time of introduction, all goods falling under CTH 8517 were exempted from payment of duties. In 2014, on specified telecommunication products that were not covered under the ITA, the Government imposed customs duties by notification dated 11.07.2014 - Imported WAP is a networki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... devices such as Laptops, Smartphone, Tablets etc., to a wired network; (ii) MIMO: It is a technology wherein multiple antennas are used simultaneously for transmission and multiple antennas are used simultaneously for reception; (iii) LTE: In telecommunication, it is a standard for highspeed cellular communication for mobile devices and data terminals. It increases the capacity and speed using a different radio interface together with core network improvements. 4. The issue in this appeal pertains to the availability of exemption from the whole of the customs duty by Beetal Teletech under Serial No. 13 of the notification dated 01.03.2005, as amended by notification dated 11.07.2014. The relevant Serial No. 13, as it stood during the relevant period, is as follows: Exemption to goods of specific heading, from customs duty (ITA Bound). In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government , on being satisfied that it is necessary in the public interest so to do, hereby exempts the following goods of the description as specified in column (3) of the Table below and falling under the heading, sub-heading or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the proposals for confiscation of imported goods under section 111 (m), penalties under sections 112 and/or 114AA and 114AA of the Customs Act. Further, it proposes to impose personal penalty on E.H. Kasturi Rangan, Director of Redington under sections 112 and 114AA of the Customs Act. 9. The show cause notice was adjudicated upon by the Additional Director, in favour of Redington for the following reasons: (i) The exemption from the whole of the customs duty is available on the imported WAP that are undisputedly MIMO enabled but without LTE standard; (ii) To treat 'MIMO and LTE products' as three categories namely only MIMO, only LTE, and both MIMO and LTE, would amount to violation of language itself and the principles stipulated in the judgment of the Supreme Court in Commissioner of Customs (Import), Mumbai vs. Dilip Kumar Co. [2018 (361) E.L.T 577 (SC)] ; (iii) The judgment of the Supreme Court in Shree Durga is not applicable since it is silent on a possible situation where set of two words having 'and' in between them, are not followed by comma but by a 'full stop'; (iv) There is no ambiguity as far as Serial No. 13 (iv) is concerned and Redington ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epartment if Telecommunications, following the policy of preferential treatment to indigenous manufacturers in Government purchases, has categorized WAP as Wi-Fi based broadband wireless access systems . The amendment made by the notification has taken out specified telecom products for increasing the BCD to 10% and this includes Wi-Fi based WAP. 12. Shri Alok Agarwal, learned counsel assisted by Shri Prachit Mahajan and Shri Shubham Tyagi, Advocates appearing for Redington made the following submissions: (i) The exclusion clause (iv) under Serial No. 13 of notification covers MIMO and LTE products. The sole dispute in the instant case is whether this exclusion clause covers products having only MIMO technology and not working on LTE standard. Exclusion clause (iv) uses the conjunction and and, therefore, the scope of clause (iv) is restricted to those products that have MIMO and LTE both. The product that only has MIMO technology would not be covered by this exclusion clause and thus cannot be excluded from the scope of Serial No. 13. Clause (iv) cannot be read as 'MIMO or LTE products', or 'MIMO products and LTE products'. In support of this contention reliance ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d customs duties by notification dated 11.07.2014. The Finance Minister s Budget Speech for the year 2014-15 and Tax Research Unit letter dated 10.07.2014 clarifies that BCD on specified telecommunication products not covered under the Information Technology Agreement is being increased from NIL to 10%. As WAP is an Information Technology product and is specifically covered under the Information Technology Agreement as Network Equipment in Attachment B, the intention is clearly not to exclude WAP imported by Ingram Micro; (vi) Exclusions in any notification are to be narrowly construed; (vii) No words can be added to the present wording of the notification; (viii) Subsequent amendments made in 2021 in another notification no. 57/2017-CUS., supports the interpretation placed by Redington; (ix) The extended period of limitation could not have been invoked in the facts and circumstances of the present case; and (x) Confiscation and penalties are not invokable. 13. The submissions advanced by learned special counsel for the Department and the learned counsel appearing for the respondent have been considered. 14. The factual position that emerges is: (a) MIMO is a technology and LTE is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to connect and join. The dictionary meaning of and is as follows. The New International Webster's Comprehensive Dictionary of the English Language: And: Also; added to; as well as; a particle denoting addition, emphasis, or union, used as a connective between words, phrases, clauses, and sentences; shoes and ships and sealing wax ... Or: Introducing an alternative: stop or go: red or white. Oxford Dictionary of English, Third Edition: And: Used to connect words of the same part of speech, clauses or sentences, that are to be taken jointly; bread and butter they can read and write a hundred and fifty. Or: Used to link alternatives: a cup of tea or coffee are you coming or not either take taxis or walk everywhere... Collins Cobuild English Dictionary for Advanced Learners: And: You can use 'and' to link two or more words, groups, or clauses. When he returned, she and Simon had already gone... Or: You can use 'or' to link two or more alternatives. Tea or coffee?... Cambridge Advanced Learner's Dictionary, Fourth Edition: And: Used to join two words, phrases, parts of sentences, or related statements together: Ann and Jim; Boys and Girls; Knives and Forks And/ o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntion advanced by learned special counsel for the Department that MIMO does not by itself mean anything unless it is followed by the expressions technology or products and, therefore, since the exception carved out has to be goods , this expression has to be interpreted to connote products based on MIMO technology. 23. What needs to be remembered is that MIMO is a technology and cannot be treated as an independent product. If the intention was to exclude even products having only MIMO technology, then the word products should have been used after MIMO as well as after LTE. It, therefore, follows that the scope of products excluded by entry (iv) would be products which use both MIMO and LTE. Thus, the term Multiple Input/Multiple Output (MIMO) and Long Term Evolution (LTE) Products means products which contain both MIMO and LTE. This view finds support from the following decisions. 24. In British Health Products, a Division Bench of the Tribunal held as follows: 7. We have carefully considered the pleas advanced from both sides. From a reading of Tariff Heading 19.01, we observe that the expression used in relation to food preparation of milk and cream is milk and cream . The word ` ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal in Ingram Micro India also confirmed the classification of identical product (i.e. WAP) under CTI 8517 62 90 and extended the benefit of the subsequent notification dated 30.07.2017. The Department has accepted the Order passed by the Tribunal. Therefore, once the benefit has been granted to Ingram Micro in the subsequent notification for an identical product, the benefit under the notification dated 01.03.2005, as amended on 11.07.2014 should also be extended to Redington. 27. This apart, what also needs to be noted is that India is a signatory to the Information Technology Agreement [ITA] dated 13.12.1996 by the World Trade Organization. The ITA requires each participant to eliminate and bind customs duties at zero for all products specified in the Agreement. India signed the Agreement on 01.07.1997. Pursuant to ITA, India introduced the notification. At the time of introduction, all goods falling under CTH 8517 were exempted from payment of duties. In 2014, on specified telecommunication products that were not covered under the ITA, the Government imposed customs duties by notification dated 11.07.2014. The Finance Minister's Budget Speech for the year 2014-15 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f is an exclusionary part of exemption notification. The High Court did not examine the issue from this angle and also failed to appreciate that exclusionary part of an exemption notification has to be construed rather strictly. Even though the word used in exclusionary part of an exemption notification has a wide dictionary meaning or connotation, only that meaning should be given to it which would achieve rather than frustrate the object of granting exemption and which does not lead to uncertainty or unintended results. (emphasis supplied) 29. It has been stated that the investigation by the DRI was not only against Redington but few other importers of these goods also and the proceedings initiated against other importers was dropped but appeals have not been filed by the Department. 30. The aforesaid discussion leads to be inevitable conclusion that WAP imported by the appellant works on technology and does not support LTE standard. Beetal Teletech was, therefore, justified in claiming exemption from the whole of the customs duty under Serial No. 13 (iv) of the notification. There is, therefore, no infirmity in the order dated 29.11.2019 passed by the Additional Director. 31. Su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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